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“Amazon Demands One More Thing From Some Vendors: A Piece of Their Company”

“Suppliers that want to land Amazon.com Inc. as a client for their goods and services can find that its business comes with a catch: the right for Amazon to buy big stakes in their companies at potentially steep discounts to market value. The technology-and-retail giant has struck at least a dozen deals with publicly traded companies in which it gets rights, called warrants, to buy the vendors’ stock in the future at what could be below-market prices, according to corporate filings and interviews with people involved with the deals…”

https://www.wsj.com/articles/amazon-demands-one-more-thing-from-some-vendors-a-piece-of-their-company-11624968099?mod=itp_wsj

Be careful when making deals with companies. If you’re going to sell out don’t do it for cheap. Your company might be a goldmine. Don’t be so quick an easy to give it up.

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