Amazon-opoly: Jeff Bezos May Be About To Control $53 Billion In Federal Government Spending

Authored by Brian McNicoll via The Daily Caller,

Jeff Bezos spends a lot of time directing the newspaper he owns, The Washington Post, to criticize President Donald Trump in every way imaginable. But for some reason, the federal government cannot stop giving Amazon — the retail empire Bezos also owns — a slew of taxpayer-subsidized subsidies. Now, Congress is considering a new federal purchasing plan that could result in Amazon’s most lucrative government handout yet.

The technology giant is no stranger to sweetheart deals that line its pockets at taxpayer expense. The U.S. Postal Service, for instance — which has lost $60 billion since 2007 — handles last-mile shipping for two-thirds of Amazon’s deliveries. This means overtime for workers and a good incoming revenue number on the USPS’s balance sheet, but it’s a financial bonanza for Amazon.

According to media reports, USPS delivers Amazon packages for $2 per package — even though it costs USPS $3.46 per package to make these deliveries. And that’s before you get into the $200 million three years ago for 270,000 handheld scanners to process the packages or the $5 billion or more to replace USPS vehicles with ones better suited to carry Amazon’s packages.

But even this cozy arrangement pales in comparison to the deal Amazon is now trying to push through Congress.

Buried deep in this year’s defense spending bill is a provision that would move Defense Department purchases of commercial off-the-shelf products to online marketplaces.

A summary of the proposal, which was inserted into the legislation by House Armed Services Committee Chairman Mac Thornberry, argues it is needed to save money over the burdensome and expensive current system.

It pointed to a report from the Inspector General of the Government Services Administration that found some IT equipment could be purchased more cheaply on the open market than through the GSA’s “schedules.”

In response, the plan calls for developing an online marketplace platform through which federal agencies can buy products such as paper clips, bottled water, computers, office furniture and more — just as any business would do.

But it also calls for this platform to be designed to “enable government-wide use of such marketplaces.” This means the government is looking only for a procurement and supply management firm big enough to offer multiple suppliers for the same product with constantly changing selection and prices and serve the entire U.S. government.

That leaves just one likely possibility  - Amazon Business - for basically monopoly control of $53 billion in federal purchasing, much of the supplies for which comes from no-bid contracts.

Amazon provides a platform for e-companies to sell through to their own customers. It receives 15 percent to 20 percent of the proceeds from such sales, which means a huge revenue stream for Amazon for doing basically nothing while vendors are forced to cough up as much as half their margin.

A government deal with Amazon sets up opportunities for abuse, not to mention control over suppliers. Amazon would get to collect an enormous amount of data on agencies, which could be used to identify top competitors and drive them out of the federal marketplace with increased fees or other rules changes.

And it means any discounts that can be negotiated for the bulk rates of purchasing the federal government does would flow not to the government and taxpayers — but instead into Amazon’s pocket.

Amazon Business, which only started in 2015, already has 1 million customers and $1 billion in sales, and its revenues grew 34 percent in the last year. Adding federal procurement would effectively drive out all competitors for its business service.

It already is moving into position to do this at the local level. In January, Amazon signed a contract with U.S. Communities, a coalition of 90,000 local governments, to provide them with an online marketplace for office supplies and other goods.

The fate of the proposal is unknown. It is in the House version of the defense spending bill but not that of the Senate. This will be resolved in a conference committee, and one solution is to try it as a pilot project before committing the entire government to it.

There certainly ought to be a breathing period before yet another government agency signs yet another deal to use tax dollars to further enrich one of the richest men on the planet.

It’s beginning to get suspicious.

Bezos Calls The Top? Sells $1.1 Billion Of Amazon Stock At Record Highs

Is the world"s richest man starting to get a little concerned that his $90 billion fortune in Amazon stock might just be fully valued?  Well, judging by his SEC disclosures from last Friday, Bezos provided investors with roughly 1.1 billion reasons why the answer to that question may be a resounding "yes".

As Bloomberg points out, Bezos sold a total of 1 million Amazon shares over the course of three days last week netting roughly $1.1 billion in proceeds.  The sale represented just 1.3% of Bezos" total stake in Amazon and leaves him with 16.4% of the company"s shares outstanding.

Of course, the stock sales came after Amazon beat earnings estimates the week prior (see: Amazon Soars Above $1,000 After Smashing Expectations) and pushed the stock to new all-time highs.  As an added benefit, the move also once again thrust Bezos ahead of Bill Gates on the Billionaire leader board.

Of course, Bezos previously reported that he would sell $1 billion a year in Amazon stock to fund his Blue Origin LLC, the rocket company fueling his dream of sending people into space.  That said, this was Bezos" second $1 billion sale in a matter of 6 months so perhaps Blue Origin just needed a little extra cash this year?

Then again, maybe this is just "tax planning" or "diversification" or any of the many other excuses executives give for selling their own stock...certainly it has nothing to do with Amazon"s 282x P/E ratio...

Amazon Is Asking Customers To Hand Over Their House Keys

Would you feel comfortable giving Jeff Bezos your house keys? Amazon is hoping that the answer is yes.

The e-commerce behemoth and creator of a global deflation impulse on Wednesday introduced a connected door-lock and security-camera system to let package carriers, guests and dog walkers into your home using an app, WSJ reports. The so-called “Amazon Key” will be available for the bargain price of $25. “This is not an experiment for us,” said Peter Larsen, vice president of delivery technology at Amazon. “We think this is going to be a fundamental way that customers shop with us for years to come."

Of course, one Amazon executive insisted that the key isn’t an experiment: the e-commerce monopolist fully expects this entry process will soon be common features of the homes of Prime customers, giving Amazon direct access to millions of homes. And that’s no accident: The key is essentially Amazon’s coup de grace in its battle to master “the last mile” of delivering packages - a phrase denoting the last leg of a package’s journey as it’s processed, placed on a delivery truck, and spirited to the customer’s door.

As we reported last week, Amazon recently struck a deal with some of the largest landlords in the country to install electronic lockers that delivery people will be able to access for the purposes of dropping off packages. The lockers have a dual purpose: They will help landlords reduce the building staff’s workload (and wages) while also cutting down dramatically on the rate of lost or stolen packages, an area that Amazon has identified as a potentially significant source of cost savings. And, as WSJ points out, in-home delivery is the “next logical step."

As it tinkers with drone delivery and its own delivery service to rival UPS and FedEx, Amazon continues to seek out every competitive advantage it can find as it tries to scale up to take on two entrenched competitors who’ve been pioneers in supply chain logistics. Given the prevalence of smartphones, cutting down on theft appears relatively straightforward.

A consequence of the rise in e-commerce is that “theft is certainly a problem,” said John Haber, who works with retailers on supply-chain issues as chief executive of consultancy Spend Management Experts. Theft is particularly pronounced during the holiday season, when some thieves dubbed “porch pirates” go from door to door stealing gifts.

 

But it remains to be seen whether consumers are ready to open their doors to strangers. Transportation industry experts said that most people are likely to balk at the idea, at least at first.

There is always a risk that customers just might balk at letting complete strangers into their home.

“People have a difficult time letting cleaning people into their house if they haven’t been properly vetted,” said Ivan Hofmann, a former FedEx Corp. executive and transportation-industry consultant. Still, he added, that is how innovation works: “You have to try things that no one else has tried and see what works.”

In the beginning, the Amazon Key system will allow in-home deliveries only from Amazon Logistics, the company’s delivery network. When an Amazon delivery-service provider brings a package to the door, he or she scans the label with a phone before requesting entry to the home.

The system unlocks the door automatically - without a code - and turns on the security camera as the delivery person opens the door and sets the package down inside. After leaving, the delivery person taps the phone again to relock the door.

 

The package recipient gets notifications throughout, including a time-stamped log and the possibility to watch a live video of the delivery or a recording afterward. The recipient can also block the ability to enter the home throughout the process.

…

Customers can also use the app to generate codes for guests to enter and will eventually add access for service providers like dog walkers and maids.

The Amazon Key package includes the new Amazon Cloud Cam security camera and a smart-lock made by partner companies. For now, it is only available to Prime members, something the company said helps add value to the $99 annual subscription fee. The service will initially be available in 37 cities starting Nov. 8.

Customers who’ve purchased Amazon’s Alexa personal assistant or Echo speakers should already be comfortable with installing the company’s devices in their homes, WSJ says. But by introducing Key, Amazon risks angering certain business partners, like smart-doorbell maker Ring and smart-door lock maker August Home Inc., which Swedish lock maker Assa Abloy AB signed an agreement to acquire last week.

However,  if Amazon’s track record is any indication, the company’s limitless tolerance to burn money on any growth idea lends it a crucial competitive advantage that could quickly see Amazon Key become a staple in all American homes, meaning that it’s only a matter of time before this tweet becomes reality.

 

AMAZON, 1998: hello we sell books but online

AMAZON, 2023: please return to your Primehouse for your nightly Primemeal, valued Primecitizen

— KRANG ???? NELSON (@KrangTNelson) June 16, 2017

 

Amazon Studio Boss Resigns Over Sexual Harassment Scandal

Embattled Amazon Studios head Roy Price – who was suspended by the company last week after a producer claimed Price had repeatedly sexually harassed her – has finally made it official.

Variety reports Price officially resigned from Amazon on Tuesday, a decision that was expected by many in the industry. In Price’s absence, Amazon Studios COO Albert Cheng was named interim president.

Isa Hackett, a producer on "The Man in the High Castle," said she was harassed by Price during a late-night cab ride on the evening of July 10, 2015, after a long day of promoting the series at Comic-Con in San Diego. Hackett attended a dinner with the show"s cast and Amazon staff at the US Grant Hotel. At the dinner, Price asked Hackett to attend an Amazon staff party later that night at the former W Hotel. She ended up in a taxi with Price and Michael Paull, then another top Amazon executive and now CEO of the digital media company BAMTech, where Price repeatedly propositioned her, Variety reported.

Price reportedly told Hackett "You"ll Love My Dick" and whispered references to anal sex in her ear while she was trying to have a conversation with another person.

Hackett said she immediately reported the incident to Amazon, but little was done until the Harvey Weinstein scandal erupted and renewed the focus on sexual predation and exploitation in the entertainment industry.

Price joined Amazon in 2004 as the company set out to launch its video-on-demand service. That business has since grown into an original-series and feature-film studio, with Price at the helm. Under Price, Amazon launched series such as “Catastrophe,” “Bosch,” and Golden Globe winners “Mozart in the Jungle” and “Transparent.”

Still, the type of popular appeal that company founder and CEO Jeff Bezos has been elusive. Earlier this year, Bezos mandated a shift in programming strategy away from the niche, naturalistic dramas favored by Price and toward large-scale genre projects with the potential to capture large international audiences.

As Amazon Studios began executing on Bezos’ mandate this summer, Price became the subject of sexual harassment allegations first reported on business website The Information in August, which stoked rumors that Price might soon be headed for the exit. His fate was sealed when Hackett went public with her claims on Oct. 12. 

"You'll Love My Dick" - Amazon Suspends Video Chief After Sexual Harrassment Allegations

Amazon has reportedly suspended Roy Price, its point man in Hollywood and the head of its ambitious video program, according to ReCode.

According to HollywoodReporter, in the wake of revelations about Harvey Weinstein’s alleged years-long sexual harassment and assault, a producer of one of Amazon Studios’ highest-profile TV shows is ready to talk about her “shocking and surreal” experience with Amazon’s programming chief.

"You will love my dick," Price allegedly said to Isa Hackett, a producer on "The Man in the High Castle," who details a July 2015 incident at Comic-Con in San Diego.

On the evening of July 10, 2015, after a long day of promoting Man in the High Castle at Comic-Con in San Diego, Hackett attended a dinner with the show"s cast and Amazon staff at the U.S. Grant Hotel. There she says she met Price for the first time. He asked her to attend an Amazon staff party later that night at the W Hotel (now the Renaissance) and she ended up in a taxi with Price and Michael Paull, then another top Amazon executive and now CEO of the digital media company BAMTech.

Once in the cab, Hackett says Price repeatedly and insistently propositioned her. “You will love my dick,” he said, according to Hackett, who relayed her account to multiple individuals in the hours after the alleged episode. (The Hollywood Reporter has confirmed Hackett told at least two people about the alleged incident in the immediate aftermath.) Hackett says she made clear to Price she was not interested and told him that she is a lesbian with a wife and children.

Hackett says Price did not relent in the cab or once they arrived at the Amazon party. As she talked with other executives, she says that Price stepped close to her and loudly said, “Anal sex!” in her ear.

Hackett says she reported the incident to Amazon executives immediately. An outside investigator, Christine Farrell of Public Interest Investigations Inc., was brought in and spoke to Hackett and executives at Amazon. Hackett says she was never told the outcome of that inquiry, but notes that she hasn’t seen Price at any events involving her shows.

"We take seriously any questions about the conduct of our employees,” an Amazon spokesperson tells THR in a statement.

“We expect people to set high standards for themselves; we encourage people to raise any concerns and we make it a priority to investigate and address them. Accordingly, we looked closely at this specific concern and addressed it directly with those involved."

But, now, as ReCode reports, Price is gone with his suspension effective immediately, according to an internal Amazon memo.

“Roy Price is on leave of absence effective immediately,” an Amazon spokesperson told Variety Thursday.

“We are reviewing our options for our projects we have with the Weinstein Company.”

Albert Cheng, a former ABC executive who joined Amazon’s video group two years ago, will be the interim head of the unit.

Ironically, last week the Wall Street Journal published a critical account of Price’s track record in Hollywood, noting that the company had spent billions on programming but with a handful of exceptions, hadn’t won plaudits or large audiences.

Meet The Tens Of Thousands Of Americans Desperate For A Job At Amazon

Today was Amazon Jobs Day, which the company said was "its biggest hiring event of the year" in which it would interview and hire 50,000 full-time and part-time employees in communities all around the country, mostly for vacant warehouse worker positions. The jobs fair is part of Amazon"s pledge to hire 130,000 workers by 2018.

Among the perks listed were the following: Full-time positions include medical benefits starting on day one and tuition pre-payment for high demand careers. Part-time positions include medical benefits that begin after 90 days and tuition pre-payment.

The company said it offers "competitive pay" for full-time workers as well as part-time workers. Wages for the advertised positions range from $11.50 an hour in Tennessee to $13.75 an hour near Amazon"s Seattle headquarters.

Amazon provided the following handy dress code tips for today"s interviews:

• Long hair must be pinned or tied up to a length that does not exceed the top of the shoulder. Beards may not exceed three inches from the face without being tied up or netted


• Extraneous articles hanging from clothing, such as chains or drawstrings, can cause a safety-risk and are prohibited


• We ask guests to wear flat, closed-toe and closed-heel shoes.


• Jewelry that dangles or protrudes from the body may come in contact with machinery and result in a safety hazard

In Robbinsville, New Jersey, Morgan Devries, 21, told NBC News she used to work in retail but is now applying for work at Amazon because the industry doesn"t pay well enough.  "I work at the airport and they are paying people $12 and under [per hour]," Clarence Williams told NBC News. "People cannot live on that type of wage! If you look at the long line, no one here is making good money."

Some lucky candidates would be given job offers on the stop: they will pack or sort boxes.

Considering Amazon"s exponential surge in (mostly part-time) employment, today"s countrywide job fair was not surprising.

What was surprising, however, are the long lines of thousands of unemployed people who showed up desperate for even a part-time job across the nation. And yes, as the gentleman says 55 seconds into the clip below, he is "desperate."

Some more examples, from New Jersey:

Wow! Check out the line of people waiting to apply for #AmazonJobsDay! @News12NJ pic.twitter.com/L6FsrLwtrY

— Kristina Behr (@KristinaBehr) August 2, 2017

More Jersey:

Hundreds lined up outside the @amazon warehouse center in Robbinsville looking for work on Amazon Jobs Day @njdotcom pic.twitter.com/2MRD5KtcGH

— Avalon Zoppo (@AvalonZoppo) August 2, 2017

Baltimore:

Massachusetts:

Wisconsin:

Illinois:

Is this what a "full employment", according to the Fed, economy looks like? 

A Former Lehman Brothers Trader: It's Time To Buy Brick And Mortar

Authored by Jared Dillian via MauldinEconomics.com,

Everyone thinks it is only a matter of time before Amazon puts every department store, every mall, every brick-and-mortar retailer out of business. Amazon gets an infinity market cap and everyone else gets zero.

Sound familiar?

That’s the accepted wisdom.

Is Amazon a great business? Yes.

Is a department store a bad business? Probably.

Does Amazon get 100% market share, with department stores getting zero? Probably not.

Amazon has over 80 million Prime subscribers in the US. It’s not quite saturated, but it’s getting close.

Source: Business Insider

I admit to being a Prime member, a late adopter.

It is pretty cool. Stuff shows up on my doorstep in two days, for free. The huge poker chip set I just ordered probably weighs about 40 pounds—free shipping! And I get all the Prime movies and TV shows.

But here is my thesis: Amazon will grow and grow, but there will always be a role for physical retailers. A reduced role, for sure, but there will always be a role.

From a capital markets standpoint, now might be the time to put on the trade.

The Bottom of Brick and Mortar

This is when I started thinking that we"ve reached a bottom in physical retailers.

Last week, ProShares—a $27 billion ETF manager—registered to list some double short leveraged ETFs on brick-and-mortar retailers! 

Ding!

In my experience, specialty ETFs like this are usually listed at the worst possible times. Plus, you know my thoughts on leveraged ETFs. When 2x short leveraged ETFs are being listed on physical retailers… it is probably time to buy physical retailers.

The graphic from AEI below is a couple of months old. Since then, Amazon’s market cap has soared to $481 billion. Meanwhile, Macy’s market cap has fallen to a little under $6.5 billion.

Source: Yahoo Finance

Amazon is worth around 75 times more than Macy’s? That doesn’t seem right.

I hope by this point I have you thinking.

I am no Macy’s fan. It is a pretty terrible business, it sells middlebrow stuff in middlebrow locations. Although its online business is actually not bad.

I used to buy ties at Macy’s, back in 2001. People laughed at those ties. I no longer buy ties at Macy’s.

But look—at a $6.5 billion market cap, Macy’s is reaching distressed levels…

That means we have to put our distressed investor hat on, pick this business apart, and see if there is value—in all parts of the capital structure. Maybe we don’t like the stock, but maybe we like the bonds, for example.  

And, Staples was bought by private equity recently for about 0.4 times revenue. Apply that standard to Macy’s and you get to a $10 billion valuation. They’re still kicking.

Plus, there’s an argument that this whole Internet retailing thing is just a giant bubble, according to the chart below.

Source: @bySamRo

How Do You Play It?

This is a smart trade, but it is also a dangerous trade unless you are smart.

There are two ways to do this:

1)  Be a distressed investor: Look at the worst-case scenario, look at all parts of the capital structure, and find value.

2) Be a quant:  Buy a basket of physical retailers, sell a basket of Internet retailers, and wait for them to converge.

The worst way to play it is just to naively buy Macy’s (or another retailer) and hope for the best.

Furthermore, I think it’s time to go dumpster-diving in mall REITs.

One final remark. As you look around for ideas, invest in things that would get you laughed off the set of CNBC. I assure you, if I went on Fast Money and pitched Macy’s as a long idea, I would get laughed off the set.

Those are the best trades.

It Begins: WalMart Warns Truckers It Will No Longer Work With Them If They Move Goods For Amazon

The cold war between America"s two largest retailers just turned hot.

In a note this morning from Deutsche Bank"s freight and logistics analyst Amit Mehrotra, he notes that  the "WMT vs. AMZN battle is heating up" and points to a report by DV Velocity, according to which a well respected transportation industry consultant told attendees of a logistics conference that Walmart (WMT) is telling trucking companies that it will no longer do business with them if they continue moving goods for Amazon (AMZN).

This follows similar reports citing WMT’s “request” for its tech partners to stop using Amazon Web Services.

The news, while suggestive perhaps of Walmart"s growing desperation in its war with the retail juggernaut that is Amazon, has dramatic implications not only for the future of retail (and associated prices) but for one of the most important US industries: trucking, and the number of people it employes.

According to Deutsche, these developments, "are likely to have significant implications for U.S. transportation companies, in our view, as Amazon and Walmart remain two of the largest users of truckload capacity. For reference Walmart represents about 14% of SWFT’s operating revenues and traditional retail accounts for about half of WERN"s total sales (WMT around 4%)."

A map of Amazon"s multiplying fulfuillment centers is shown below.

And, as CNBC reported last week, WalMart warned some tech companies that if they want Wal-Mart"s business, they can"t run applications on Amazon"s cloud platform, Amazon Web Services, some tech companies told The Wall Street Journal. Wal-Mart uses some tech vendors" cloud apps that run on AWS, Wal-Mart spokesman Dan Toporek told the Journal, though he declined to say which apps or how many. But Toporek did acknowledge instances where Wal-Mart is pushing for AWS alternatives, the Journal reported Wednesday. 

Wal-Mart spokesman Toporek told CNBC in an email: "Our vendors have the choice of using any cloud provider that meets their needs and their customers" needs. It shouldn"t be a big surprise that there are cases in which we"d prefer our most sensitive data isn"t sitting on a competitor"s platform." Wal-Mart doesn"t appear to be alone in this push to leave AWS, either.

Other large retailers are reportedly requesting that service providers move away from AWS, the Journal said, citing technology vendors that work with retailers. Adding to the many growing conflicts of interest, Amazon has confirmed a number of retailers it competes with use AWS, for example GameStop.

The battle between Wal-Mart and Amazon is only heating up, after Amazon announced plans last week to acquire brick-and-mortar grocery retailer Whole Foods. With Amazon stepping into Wal-Mart"s turf in grocery, Wal-Mart has been trying to beef up its e-commerce presence.

In light of AMZN"s recent expansion with the purchase of WFM, one can see why WMT is starting to take it much more seriously. Perhaps Amazon"s latest push (and WMT"s lobbying effort) may explain why Trump decided to finally reignite his long-simmering war with AMZN CEO Jeff Bezos, when this morning he tweeted “The #AmazonWashingtonPost, sometimes referred to as the guardian of Amazon not paying internet taxes (which they should) is FAKE NEWS!”

The #AmazonWashingtonPost, sometimes referred to as the guardian of Amazon not paying internet taxes (which they should) is FAKE NEWS!

— Donald J. Trump (@realDonaldTrump) June 28, 2017

Amazon Discloses Iranian Transactions That May Have Violated US Sanctions, Warns It May Be "Penalized"

In a 10-K filed on Friday afternoon, Amazon disclosed that certain transactions and business ties with Iran may have violated U.S. sanctions, warning that it may be penalized after a regulatory review of the activities.

In the "Other Contingencies" section of its 10-K, Jeff Bezos" company had determined that, between January 2012 and December 2016 it had "processed and delivered orders of consumer products for certain individuals and entities located outside Iran covered by the Iran Threat Reduction and Syria Human Rights Act or other United States sanctions and export control laws. The consumer products included books, music, other media, apparel, home and kitchen, health and beauty, jewelry, office, consumer electronics, software, lawn and patio, grocery, and automotive products."

The world"s biggest online retailer also said that it has "voluntarily reported these orders to the United States Treasury Department’s Office of Foreign Assets Control and the United States Department of Commerce’s Bureau of Industry and Security." and said it will cooperate with a review by the agencies, "which may result in the imposition of penalties."

As Bloomberg, which first spotted the violation, explains, the violations are the result of then-President Barack Obama"s signature of the ITRA in 2012, meant to strengthen trade restrictions on Iran and try to persuade the country to stop its nuclear activities. This law imposes civil penalties and takes other action against foreign subsidiaries of U.S. companies engaging in transactions with Iran. In January 2016, the U.S. lifted many of the economic sanctions tied to the nuclear program.

Amazon further clarified the violations which consisted of consumer products sold to individuals and unspecified groups controlled or owned by the Iranian government, among which "consumer products valued at approximately $50 for an Iranian embassy located in a country other than Iran; consumer products valued at approximately $1,300 for an individual designated under Executive Order 13224; consumer products valued at approximately $2,400 for an entity owned or controlled by the Iranian government; and consumer products valued at approximately $250 for an individual who may have been acting for an entity designated under Executive Order 13382 and owned or controlled by the Iranian government. The consumer products included books, other media, apparel, home and kitchen, jewelry, office, toys, consumer electronics, software, health and beauty, pet products, and lawn and patio."

The company also said that is was "unable accurately to calculate the net profit attributable to these transactions" and said it does "not plan to continue selling to these accounts in the future."

The statement concludes with Amazon"s declaration that its "review is ongoing and we are enhancing our processes designed to identify transactions associated with individuals and entities covered by the ITRA."

Why come clean now, and disclose violations that took place as far back as 2012?

Perhaps because Amazon, along with many other tech companies, was a key catalyst behind the recent successful lawsuit against the Trump administration"s immigration executive order. While it is unknown if AG Sessions (or Trump himself) will retaliate against said companies, Jeff Bezos, who has a long "history" with Trump, decided not to take the chance.