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Book Notes: The Everything Store: Jeff Bezos and the Age of Amazon

Note: From time to time I share notes about the books I’ve been reading, or have revisited after many years. For more such posts, see the Book Notes category

everything_store

The Everything Store: Jeff Bezos and the Age of Amazon, by Brad Stone

Published: 2013
ISBN: 0316219282
Amazon link

Brief Summary

The fascinating story of the rise of Amazon, which is the story of Jeff Bezos himself. He is brilliant, analytical, highly competitive, and driven. Bezos built Amazon not only to create the best contemporary company of its kind, vanquishing all rivals, but engineered systems to innovate and continue to succeed well into the future.

My notes:

  • I read this book as part of the research for my Wall Street Journal story, published in November, about Amazon’s rapid progress here in India. I wanted to learn as much as I could about Amazon. I couldn’t have picked a better book.
  • Author Brad Stone, who covered Amazon for years for the likes of The New York Times and Newsweek, provides the fascinating story of Bezos’s personal background, his early academic success, and his bold decision to leave a high-paying Wall Street job to move out west and found Amazon.
  • The book is not a hagiography, however. Bezos and Amazon are presented warts and all. Anecdotes show the Amazon founder to be at times ruthless in his quest for success, and other times enormously generous. And the high-pressure nature of Amazon’s corporate culture is plain to see.
  • I’m old enough to recall the dotcom bust, but “The Everything Store” serves as a good reminder to younger readers just how bleak things got for Amazon, when its stock fell and many believed one of its e-commerce competitors, eBay, would be the runaway success, not Amazon.
  • From a communications perspective, it’s interesting to note the book highlights several instances when new public announcements have been timed over the years to conincide with competitors’ quarterly results, as a way to steal their thunder. And Bezos himself is a master at messaging, honing “Jeff-isms” to express the company’s point of view in a pithy manner, often deflect various criticisms of the company along the way.
  • If you want to learn more about Bezoz, Amazon, and its culture, Stone has helpfully provided a list of “a dozen books widely read by executives and employees that are integral to understanding the company. Some of the titles include the novel “The Remains of the Day,” books by Sam Walton and Alan Greenberg, and modern-day business classics like “The Innovator’s Dilemma” and “The Black Swan.”

Bezos Paid 17 Times Adjusted Profit for the Washington Post

Bloomberg reports today:

Jeff Bezos’s purchase of the Washington Post may look like a steal, yet it came at a rich valuation that newspapers such as the New York Times Co. (NYT) may only dream of obtaining.

The founder of Amazon.com Inc. (AMZN) plunked down $250 million for the Post newspaper division, about 17 times adjusted profit, according to data compiled by Bloomberg. That multiple implies a valuation for the New York Times of about $4 billion — more than double its current market value. Major metropolitan newspapers should fetch 3 or 4 times profit, said research firm Outsell Inc.

“Bezos paid a friendship premium of $200 million here,” Ken Doctor, a media analyst at Burlingame, California-based Outsell, said in a phone interview. “There are a handful of news brands in the world that will merit some kind of premium over the usual multiple, but the multiple over the multiple here seems really high.”

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