“Amazon Demands One More Thing From Some Vendors: A Piece of Their Company”
June 30, 2021
“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…”
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.