Yet Another Journalist Tells Us Why Amazon Won’t Spin Off AWS

Are you a business journalist on deadline with no idea what to write about? An editor with some space to fill? There are some stories that will work every time. How about this? Propose a spinoff that will never happen, like Amazon(AMZN) spinning off its web services business. Then, tell us why it won’t happen.  Now, punch out, and go grab a drink at your favorite watering hole. You done good, kid.

Seriously, the Amazon spinoff strawman is so played out that a recent article on TheStreet can’t even find a quote to support the idea. The best it can do:

So at some point, wouldn’t it benefit Amazon to spin out AWS in order to allow it to be more fully valued, and the business more focused?

And the answer- the pesky problem that the company’s valuation already reflects the AWS business:

Amazon does not seem to suffer from a clouded valuation, however. “Just take a look at the share price performance ever since [Amazon] started to break out AWS financials–clearly the market is giving the combined businesses credit for the future of AWS,” Vizi wrote.

Move along, nothing to see here.

Disclosure: The author owns shares in AMZN


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