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Bezos Says Amazon Will Announce Second Headquarters by Year End

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By Douglas A. McIntyre Updated Published
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Bezos Says Amazon Will Announce Second Headquarters by Year End

© JurgaR / Getty Images

Amazon.com Inc. (NASDAQ: AMZN) founder Jeff Bezos said his company will announce the location of its second headquarters by the end of the year. Cities have been aggressively vying for it, as it is supposed to create tens of thousands of jobs.

Residents and businesses in some cities believe the move would be a mixed blessing because Amazon would receive huge tax credits and would put a strain on infrastructure and raise real estate prices. Nevertheless, a city will get to test those theories well into 2019 and 2020 when the location actually will be built.

According to CNBC:

“The answer is very simple,” Bezos told David Rubenstein, the president of the Economic Club of Washington D.C. and the cofounder of the Carlyle Group. “We will answer the decision before the end of the year.”

The reason to create a second headquarters has always been fuzzy. Almost certainly no other large U.S. company has a second headquarters. One is enough to hold senior staff and perhaps a large part of operations. Amazon’s headquarters is in Seattle, where it has tens of thousands of square feet of space. Any other location, for any other company, would be a place to put a factory, distribution center or home for a division. Bezos does not think that is enough.

[nativounit]

Amazon launched its quest to find a second headquarters on September 7, 2017. The company’s management wrote:

Amazon today announced plans to open Amazon HQ2, a second company headquarters in North America. Amazon expects to invest over $5 billion in construction and grow this second headquarters to include as many as 50,000 high-paying jobs. In addition to Amazon’s direct hiring and investment, construction and ongoing operation of Amazon HQ2 is expected to create tens of thousands of additional jobs and tens of billions of dollars in additional investment in the surrounding community.

It added that it had some “preferences” for the location:

  • Metropolitan areas with more than one million people
  • A stable and business-friendly environment
  • Urban or suburban locations with the potential to attract and retain strong technical talent
  • Communities that think big and creatively when considering locations and real estate options

The winning city will get the spoils, and the burden that goes with them.

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Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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