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A spinoff of Amazon Web Services (AWS) is "inevitable," declares Oppenheimer's Tim...

A spinoff of Amazon Web Services (AWS) is "inevitable," declares Oppenheimer's Tim Horan: he cites Amazon's (AMZN) conflicts with potential AWS customers, the need for more scale, and the possibility of running AWS as a REIT among his reasons. The math Horan uses to argue AWS could be worth $101B in 2018 is questionable, but there's little doubt the cloud infrastructure giant would fetch a hefty IPO valuation. But are Jeff Bezos & co. willing to surrender control of a perceived crown jewel? (Macquarie estimates)
Comments (1)
  • I'm not so sure. Amazon currently claims that AWS revenues are 100% profit. Spinning AWS off will require reporting AWS costs, and that might destroy more AMZN value (as perceived by shareholders) than it creates.
    11 Feb 2013, 06:28 PM Reply Like
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