Amazon’s name gets tossed into spinoff ring, The Edge calls Bezos Break-up
Dec 16, 2014
By John Jannarone, CNBC Senior Writer:
Spinoff mania heats up, even Amazon is getting pulled into the discussion. The e-commerce giant is predicted to separate its Amazon Web Services cloud business into a separate company in 2015, according to a note from research firm The Edge Consulting Group, which specializes in spinoffs.
The Edge argues that AWS, which offers computing capacity for customers so they don’t need to build their own server warehouses, is expected to have higher margins than the rest of Amazon and would command a higher valuation separately. Amazon shares have declined 25 percent in 2014 due partly to concerns about the company’s razor-thin profit margins. Amazon declined to comment. Another reason to separate AWS is that it could become a takeover target for companies like Salesforce.com or VMware…