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How Jeff Bezos made peace with Donald Trump

How Jeff Bezos made peace with Donald Trump

  • 20.03.2025 14:33
  • arstechnica.com
  • Keywords: danger, danger

Jeff Bezos shifted his stance toward Donald Trump after a legal battle over a Pentagon contract, aligning Amazon with Trump's administration to protect business interests, particularly Blue Origin. This reversal has caused internal strife at The Washington Post, as Bezos' editorial changes and financial deals with the Trump family have alienated staff and subscribers.

Amazon ServicesAmazon NewsAMZNsentiment_dissatisfied

Estimated market influence

Amazon

Amazon

Negativesentiment_dissatisfied
Analyst rating: Strong buy

Amazon is facing potential legal actions and financial risks due to its relationship with Trump, impacting its contracts and market position.

Blue Origin

Negativesentiment_dissatisfied
Analyst rating: N/A

Blue Origin's future depends on government contracts which are at risk due to Trump's influence and competition with SpaceX.

Context

Analysis: Jeff Bezos' Shift in Relationship with Donald Trump

Key Facts and Data Points:

  • Amazon's Legal Dispute: Amazon sued the Pentagon in 2019 over a $10 billion cloud-computing contract (JEDI), alleging Trump blocked it due to animus toward Bezos and The Washington Post.
  • Bezos' Business Empire:
    • Owns Amazon, the world's largest ecommerce platform and cloud provider.
    • Controls Blue Origin, a space exploration company competing with SpaceX.
    • Owns The Washington Post, one of America’s most influential newspapers.
  • Financial Investments in Trump:
    • Amazon donated $1 million to stream Trump's inauguration on Prime Video.
    • Paid $28 million for a Melania Trump documentary (nearly tripling Disney's bid).
    • Revived old episodes of The Apprentice on Prime Video to court Trump favor.
  • Blue Origin Contracts: Holds significant government contracts, including a $10 billion lunar mission, competing with SpaceX.

Business Insights and Market Implications:

Strategic Calculations:

  • Protecting Business Interests: Bezos' shift toward Trump appears driven by practical considerations to safeguard Amazon's $20+ billion in federal contracts (e.g., NSA cloud services) and Blue Origin's government-dependent projects.
  • Fear of Regulatory Crackdown: Concerns about the Biden administration's antitrust actions under Lina Khan, who has targeted Big Tech. Bezos fears Amazon could be a "poster child" for regulatory scrutiny.

Competitive Dynamics:

  • Space Race: Blue Origin faces intense competition from SpaceX, with Trump's proximity to Musk creating additional risks. A Trump-Musk alliance could harm Blue Origin's government contracts.
  • Tech vs. Government: Amazon and other Big Tech firms are navigating a tense relationship with regulators, with antitrust cases (e.g., FTC v. Amazon) looming.

Media Influence:

  • The Washington Post's Decline: Bezos' editorial decisions (e.g., ceasing Harris endorsements) have alienated staff and subscribers, leading to a significant drop in revenue and morale.
  • Public Perception: The Post's reputation as a "guardian of democracy" has been tarnished, with veteran journalists leaving or criticizing Bezos' leadership.

Financial Risks:

  • Government Contracts: Amazon's reliance on federal contracts makes it vulnerable to political shifts. Losing JEDI was a turning point for Bezos.
  • Space Exploration Costs: Blue Origin operates at significant financial loss, making government contracts critical for viability.

Long-Term Effects and Regulatory Impacts:

  • Regulatory Uncertainty: The FTC's antitrust focus poses long-term risks for Amazon and other tech giants. Bezos' alignment with Trump may aim to influence regulatory outcomes.
  • Blue Origin's Future: Success hinges on securing U.S. government contracts, which could be jeopardized by a Trump-Musk alliance or regulatory actions.

Conclusion:

Bezos' shift toward Trump reflects a calculated strategy to protect his vast business empire, particularly Amazon and Blue Origin, amid political and regulatory challenges. However, this pivot has strained relationships at The Washington Post, raising questions about the long-term sustainability of his media holdings. The interplay between Big Tech, government contracts, and politics will likely shape market dynamics for years to come.