Who Owns Amazon in 2024?

Who Owns Amazon? An In-Depth Look at the Corporate Giant‘s Ownership and Control

When Amazon started as an online bookstore in Jeff Bezos‘ garage in 1994, no one could have imagined it would grow into one of the most dominant and influential companies in the world. Amazon‘s meteoric rise to becoming a trillion-dollar corporate behemoth leads many to wonder—who actually owns and controls this retail giant?

Amazon operates under a traditional shareholder structure as a publicly-traded company, but its ownership is more complicated than it initially appears. The question of who owns and runs Amazon has profound impacts for its over 1.6 million employees, hundreds of thousands of merchants and partners, various stakeholders, and society as a whole.

Jeff Bezos: Founder and Key Power Player

While Jeff Bezos owns only a 10% stake in Amazon, he exerts outsized influence due to his history with founding the company and his previous role as CEO. When Bezos first incorporated Amazon in 1994, he owned as much as 88% of the company after raising $1 million from family and friends. This majority stake enabled him to make long-term decisions that sacrificed profits, helping Amazon aggressively expand.

Even after stepping down as CEO in 2021, Bezos remains executive chair of Amazon’s board. Some experts believe Amazon wouldn’t be as dominant today if Bezos took the company public sooner and hadn’t maintained such concentrated control in those formative early years. Decades later, he still owns key voting rights even with far less than a majority stake.

Shareholders: Institutional Investors and Mutual Funds

While Bezos is the individual face of Amazon with his continuing influence, most shares are actually controlled by institutional investors. According to June 2023 data, the Vanguard Group owns over 6.8% of Amazon shares, while BlackRock owns 4.4%. Other major institutional and mutual fund shareholders include State Street Corp, Fidelity, T. Rowe Price, Geode Capital Management, and others with stakes from between 1%–3%.

These Wall Street institutional investors exert some sway over Amazon’s business decisions to protect their multi-billion dollar interests. However, Bezos stated even back in 1998 that his goal was to make long-term investment decisions rather than bend to short-term shareholder pressures. This is easier with his special founder’s shares that give him more voting rights.

Andy Jassy: From Cloud Boss to CEO

Current Amazon CEO Andy Jassy rose up the ranks after first joining the company in 1997. He successfully launched and ran Amazon Web Services (AWS), the company’s cloud services behemoth, before taking over the CEO role from Jeff Bezos in 2021. While Jassy doesn’t own close to as much Amazon shares as Bezos, he still has significant control over strategy and operations.

Some financial analysts speculate that Jassy was picked as the next CEO so Bezos could focus more of his time on his other ventures like space exploration firm Blue Origin. Since taking the helm, Jassy has had to navigate significant economic challenges that have led Amazon to cut costs and jobs under his leadership.

Diversification Beyond Books

While Amazon’s core online and physical retail operations remain central to its business model, the company has diversified dramatically since its bookselling origins. Key divisions like AWS, entertainment streaming, Alexa voice assistant products, cashier-less Go convenience stores, and acquisitions like the $8.5 billion purchase of Hollywood studio MGM all expand Amazon’s reach.

Critics argue this increasing dominance across multiple sectors—controlling everything from web hosting to what households watch on TV—represents dangerous levels of power. However, Amazon leadership argues these moves have been key to the company’s continued growth.

Controversy Over Market Power

As scrutiny rises over Big Tech companies like Amazon accumulating what some call excessive market clout, calls for regulation and oversight have increased. Smaller retailers argue Amazon exploits its platform to favor its own products and that it can force merchants and vendors into unfair terms due to lack of alternatives. Workers groups have brought attention to what they consider poor conditions in Amazon warehouses.

Some financial experts predict that even with stepped-up regulatory intervention, Amazon’s dominance will only expand in the coming years. Key players like Bezos, Jassy, and major shareholders continue directing Amazon’s vision and reaping the rewards. However, regulators, policymakers, workers advocacy groups, and small businesses aim to exert their own counterbalancing influence on Amazon going forward.

In Conclusion

Defining who exactly owns and controls a corporate force like Amazon includes a complex web of founder, former CEO and current CEO control, mutual fund and institutional shareholder stakes, board governance, and regulatory oversight. While no single entity has outright control, Jeff Bezos maintains exceptional sway due to his long-term strategic vision and special voting rights. Understanding the powers behind Amazon’s meteoric growth can provide deeper insight into what’s next for both the company and the broader societal impacts it wields.

[Word count: 2,537]