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Here Are the Amazon Rivals Jeff Bezos Could Buy With His Billions

Last Updated September 23, 2020 2:09 PM
Mark Emem
Last Updated September 23, 2020 2:09 PM
  • Jeff Bezos’ fortune has grown by over $60 billion this year.
  • The Amazon CEO’s net worth is currently higher than the GDP of more than 70% of the world’s countries.
  • His wealth is more than double that of Warren Buffett.

Amazon (NASDAQ:AMZN) founder and CEO Jeff Bezos is now worth $179 billion . This year, amid the worst economic crisis in decades, he has added $64 billion to his wealth.

Jeff Bezos
Jeff Bezos is by far the wealthiest person in the world. | Source: Bloomberg 

Bezos’ fiercely competitive personality is what has turned Amazon into the e-commerce behemoth it is today.

Whether it is shipping, entertainment or defense contracting, the world’s fourth-largest public company  by market cap keeps venturing into new fields. Now Bezos’ net worth vastly exceeds most of Amazon’s biggest competitors in each of these industries.

Jeff Bezos could buy U.S. shipping giants and remain a billionaire

Before the pandemic, Amazon ran a shipping service that utilized its excess capacity. Now Amazon’s shipping service is currently only being used for its own needs .

If he wanted, Bezos could acquire the major competitors of Amazon’s shipping service without flinching. This includes FedEx (NYSE:FDX) and United Parcel Services (NYSE:UPS). FedEx’s market cap  is approximately $44 billion, while United Parcel Services’ is about $84 billion.

Even after acquiring them, he would still retain a balance of over $50 billion.

Uncle Sam and the giant retailer

Amazon Web Services offers cloud services  to the U.S. Defense Logistics Agency, U.S. Navy, U.S. Air Force, and U.S. Special Operations Command.

Amazon harbors great ambitions as a defense contractor. | Source: @demandprogress/Twitter 

If Bezos decides he wants Amazon to start building military hardware, he could easily buy any of the major U.S. defense contractors out of his pocket.

Bezos’ wealth currently exceeds the market cap of the top five U.S. defense contractors. This includes Lockheed Martin (NYSE:LMT), which is valued at $108 billion , Boeing (NYSE:BA) at $98 billion, and Raytheon Technologies (NYSE:RTX) at $94 billion.

Meanwhile, Northrop Grumman Corporation (NYSE:NOC) is valued at $52 billion, and General Dynamics (NYSE:GD) at $43 billion.

eBay’s fall, Amazon’s rise

Amazon was founded more than a year before eBay (NASDAQ:EBAY). In the first decade of their existence, eBay put in a better performance than Amazon in terms of revenues and shareholder value.

Fifteen years ago, eBay had 30% more traffic than Amazon . In December 2005, Amazon’s market cap was under $30 billion , while eBay’s was over $60 billion .

Twelve years ago, eBay had 84.5 million active users against Amazon’s 81 million. Currently, Amazon holds 38% of the U.S. e-commerce market share , while eBay’s is just 4.5%.

At the moment, Bezos is worth more than four times eBay’s market cap. If he decided to acquire eBay, it would leave him with more than enough to purchase an emerging threat, Shopify (NYSE:SHOP). The latter’s market cap stands at $109 billion.

With a couple more billions, streaming would be his to lose

Within the video streaming business, Bezos’ net worth is about 85% of the market cap of Amazon Prime Video’s biggest rivals.

That includes Netflix  (NASDAQ:NFLX), Walt Disney (NYSE:DIS), which owns Disney+ among other streaming services, and AT&T (NYSE:T), which owns HBO Max. The market caps of each of the three firms range between $210 billion and $213 billion.

Competition in online streaming is growing, but Bezos could buy the parent companies of some of these services with just a bit of help. | Source: @sallesino/Twitter 

Regarding music streaming, he is worth far more than Spotify (NYSE:SPOT), an industry leader whose market cap stands at nearly $50 billion.

If Jeff Bezos were a country…

Jeff Bezos’ net worth relative to the GDP around the world is intimidating, too. If he were a country, Bezos would be the 53rd richest by GDP.

At the current pace, Bezos could soon be worth more than the GDP of oil-rich Iraq. | Source: Worldometers 

Only 52 countries currently have a GDP higher than Jeff Bezos’ net worth.

When Bezos finally becomes the world’s first trillionaire, his net worth will be higher than the GDP of nearly 92% of the world’s countries. That includes many OECD countries  based on the current GDP figures.

Disclaimer: This article represents the author’s opinion and should not be considered investment or trading advice from CCN.com. The author holds no investment position in the above-mentioned securities.