11–20 of 65 posts
Yet another company driven out of China by government-industry collusion.
Looks like Bitcoin is the only "company" succeeding in China.
Apple and Starbucks are among the few still thriving, for now. GM is also still doing ok there, via a typical partial ownership arrangement.
McDonald's and YUM! Brands threw in their towels, after initially having booming businesses.
I guess Jeff Bezos still need to learn few things from Jack Ma. Would be cool to read the inside stories.
Keeping in mind that half of Jack Ma's wealth derives from one of the greatest thefts in world history, of Ant Financial from Alibaba shareholders (including Yahoo and Softbank). Equivalent to Bezos discharging AWS into his own private hands, without compensating Amazon shareholders. Let's also hope Jeff Bezos doesn't learn that trick.
Seems like a pretty massive technology transfer.
Two things I take away from this. 1. Amazon decided that the risk of doing business in China (handing over information & know-how to the government, helping it suppress the human rights of its citizens, etc) was not worth the revenue that it would make. 2. It sold for $300 million. That means its run-rate was probably only $50 million a year or so annually (or maybe less). That's not very much at all, given that AWS'…
> The buyout was an attempt to “comply with our country’s laws and rules and further improve the security and the service quality of the AWS cloud-computing service operated by the company,” Beijing Sinnet said. This was long time coming: https://www.nytimes.com/2017/08/01/business/amazon-china-int... Though I wonder how are the acquiring companies funded? And if China can continue doing this long term.
This is a great strategy for China and it’s utterly insane that we allow this situation to continue.
Two things I take away from this. 1. Amazon decided that the risk of doing business in China (handing over information & know-how to the government, helping it suppress the human rights of its citizens, etc) was not worth the revenue that it would make. 2. It sold for $300 million. That means its run-rate was probably only $50 million a year or so annually (or maybe less). That's not very much at all, given that AWS'…
AWS did $4.58 billion this latest quarter. They're tracking to a $20+ billion annualized run-rate.
Two things I take away from this. 1. Amazon decided that the risk of doing business in China (handing over information & know-how to the government, helping it suppress the human rights of its citizens, etc) was not worth the revenue that it would make. 2. It sold for $300 million. That means its run-rate was probably only $50 million a year or so annually (or maybe less). That's not very much at all, given that AWS'…
China will likely start opening up more because Western companies aren't as naive anymore and short term profits for long term losses aren't much of an option anymore now that Chinese companies are well developed in all the tech and economies of scale.
> The buyout was an attempt to “comply with our country’s laws and rules and further improve the security and the service quality of the AWS cloud-computing service operated by the company,” Beijing Sinnet said. This was long time coming: https://www.nytimes.com/2017/08/01/business/amazon-china-int... Though I wonder how are the acquiring companies funded? And if China can continue doing this long term.
Why couldn’t they? No/little international pressure to do otherwise and a currency printing press to subsidize back room deals. This is a great strategy for China and it’s utterly insane that we allow this situation to continue.
That is the point I am trying to make. How long before everyone says this is insane and tries to start blocking deals?
Though China's inflation due to currency printing press might come home to roost before that happens.
Earlier quoted context omitted.
AWS did $4.58 billion this latest quarter. They're tracking to a $20+ billion annualized run-rate.
Thanks for that info! That means AWS's China business accounted for less than 0.25% of its global business (based on sale price.)