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The tablet master: Amazon's $1.2 billion headquarters

Staff writer ▼ | October 6, 2012
Every company and its brother has a tablet these days but they are only three to rule them all: Samsung, Apple and Amazon. Now Amazon with its new headquarters shows who's the boss.
Amazon CEO Jeffrey P. Bezos
Amazon CEO Jeffrey P. BezosEvery company and its brother has a tablet these days but they are only three to rule them all: Samsung, Apple and Amazon. Now Amazon with its new headquarters shows who's the boss.


Amazon.com Inc. has agreed to buy a part of its Seattle headquarters for $1.2 billion from an investment firm owned by Paul Allen, writes The Wall Street Journal. That's a lot of money for a pair of keys - a lot of pairs for that matter because there are 11 buildings with a total of 167,000 square meters (1.8 million square feet - of office space) but the real news is that Amazon is clearly showing its strength.

The company agreed to pay some $644 per square foot while the average price is $308 for Seattle office space. There are clear advantages of that move and one of them is having its own headquarters organized according to Amazon's rules and needs. That reason alone is enough for the biggest office transaction of the year in the U.S.

However, the message is stronger than it seems at the first look and it tells us that Amazon is doing very well and have no intention to stop growing. Although it's shares fell 0.75 percent (closing price $258.51 on October 5), they have climbed 49 percent this year and that makes its CFO a very happy man.

There are two reasons for that. First, the tablet market is on the rise and in fact it just started to grow so the potential is huge. Tablets are new notebooks, a piece of hardware that changes the way we work, play and interact. Amazon's Kindle series set the standard among eBooks reader and now they are setting it among full-fledged tablets and Apple and Samsung have something to worry about.

The company just started to deliver Kindle Paperwhite and Kindle Paperwhite 3G, reading devices already described by some as the best readers with no true competitors if you're into books. With a strong user base and fans of older Kindle models - and user who abandoned other devices to switch to Kindle - new devices are a subscribed to success. The company announced that that developers can now submit apps for distribution later this year in Japan and it launched Amazon Cloud Drive in Italy and Spain, following recent launches in the UK, Germany and France.

All markets are covered, both geographical and technological, and it's safe to say that Amazon CEO Jeffrey P. Bezos signed that $1.2 billion check with a smile on his face.


 

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