Episode 28: The Amazon IPO with original Amazon Board Member Tom Alberg
Acquired31 Joulu 2016

Episode 28: The Amazon IPO with original Amazon Board Member Tom Alberg

Ben & David welcome very special guest Tom Alberg, board member and first lead investor in Amazon.com, to cover the IPO of "earth’s most customer-centric company". From longterm thinking to flywheels to riding big waves, this episode is chock full of lessons and stories from the journey of building one of tech’s most iconic franchises. We hope you enjoy listening as much as we did recording it!

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© Copyright 2015-2025 ACQ, LLC


Topics covered include:
  • Tom’s “prolific” bio from the Amazon S-1
  • Jeff Bezos’s journey from a Vice President at the New York hedge fund D. E. Shaw to founding Amazon in a Bellevue, WA garage in the summer of 1994
  • Jeff’s longterm thinking as evident in the early days of Amazon, and his approach that "failure is ok, but not trying things is not ok”
  • Raising the seed money for Amazon before product launch, how Tom met Jeff and decided to invest despite the “high” valuation
  • Tom's (and Jeff’s) focus on the power of targeting large and growing markets
  • Amazon’s actual overnight success after launching the website: according to Tom at the time, "By the second or third week… It was clear there was a trend here.”
  • How Amazon’s venture round, led by John Doerr of Kleiner Perkins, came together in the spring of 1996
  • Amazon’s torrid growth through 1996, Jeff’s mantra of “get big fast” to win the land grab of online book selling, and the board’s decision to prepare for a public offering in the spring of 1997
  • How Frank Quattrone and Bill Gurley, then of Deutsche Bank, won the lead position for the Amazon IPO, beating out more storied firms such as Goldman Sachs and Morgan Stanley
  • Development of the flywheel concept within Amazon, as an outgrowth of maniacal focus on creating superior customer experience
  • Amazon's public offering on May 15, 1997 at $18 per share (effectively $1.50 relative to today’s stock price after splits), raising $54M at a market capitalization of $438M — and subsequently trading down during the first few months following the IPO
  • Amazon and Jeff’s management of investor perceptions of the company, and ability to sell the longterm vision over short term profits — “you get the investors you ask for”
  • The creation of the first annual letter to Amazon shareholders included in the company’s 1997 annual report (and republished every year since), and then-CFO Joy Covey’s role and contributions to it
  • Raising convertible debt just before the peak of the dotcom bubble and subsequent ability to survive the burst, and the impact of the downturn on Amazon culture

The Carve Out:

Jaksot(205)

Episode 4: Bungie (with Xbox Co-Founder Ed Fries)

Episode 4: Bungie (with Xbox Co-Founder Ed Fries)

Ben and David are joined by Former Microsoft VP and Co-Founder of Xbox, Ed Fries, to discuss the Bungie acquisition and the development of Halo. Highlights include: Ed’s call with Steve Jobs after the acquisition, and sharing the stage with Steve and Bungie Co-Founder Alex Seropian at the Macworld Keynote.Bungie today, and the unlikely path to get there led by Harold Ryan.How to find something that all parties want to get a deal done, the creation Peter Tamte’s spin-out Mac gaming studio, and orchestrating the division of current Bungie projects and assets with Take-Two, led by Ryan Brandt.Saving a project that’s off schedule and missing the mark, and how Jason Jones led the effort to make Halo 2 a hit at launch.Sponsors:Sentry: https://bit.ly/acquiredsentryServiceNow: https://bit.ly/acquiredsnHuntress: https://bit.ly/acqhuntressMore Acquired!:Get email updates with hints on next episode and follow-ups from recent episodesJoin the SlackSubscribe to ACQ2Merch Store!© Copyright 2015-2025 ACQ, LLC

30 Marras 20151h 7min

Episode 3: Twitch

Episode 3: Twitch

Ben and David discuss Amazon's acquisition of Twitch in 2014. Unlike previous episodes, this recent acquisition still has a lot of open questions, and Amazon hasn't publicly reported growth of Twitch since the purchase. Ben and David talk about Justin Kan's original product with Justin.tv, and the transformation into the Twitch that Emmett Shear is running today.Sponsors:Sentry: https://bit.ly/acquiredsentryServiceNow: https://bit.ly/acquiredsnHuntress: https://bit.ly/acqhuntressMore Acquired!:Get email updates with hints on next episode and follow-ups from recent episodesJoin the SlackSubscribe to ACQ2Merch Store!© Copyright 2015-2025 ACQ, LLC

16 Marras 201553min

Episode 2: Instagram

Episode 2: Instagram

Ben and David discuss Facebook's acquisition of Instagram in 2012. Was it a success? If so, what are the criteria that made it work? What lessons can be learned for other acquisitions in the future?Sponsors:Sentry: https://bit.ly/acquiredsentryServiceNow: https://bit.ly/acquiredsnHuntress: https://bit.ly/acqhuntressMore Acquired!:Get email updates with hints on next episode and follow-ups from recent episodesJoin the SlackSubscribe to ACQ2Merch Store!© Copyright 2015-2025 ACQ, LLC

1 Marras 201542min

Episode 1: Pixar

Episode 1: Pixar

Ben and David discuss Disney's acquisition of Pixar in 2006. Was it a success? If so, what are the criteria that made it work? What lessons can be learned for other acquisitions in the future?Sponsors:Sentry: https://bit.ly/acquiredsentryServiceNow: https://bit.ly/acquiredsnHuntress: https://bit.ly/acqhuntressMore Acquired!:Get email updates with hints on next episode and follow-ups from recent episodesJoin the SlackSubscribe to ACQ2Merch Store!© Copyright 2015-2025 ACQ, LLC

15 Loka 201538min

Trailer: What is Acquired?

Trailer: What is Acquired?

Every company has a story. Learn the playbooks that built the world’s greatest companies — and how you can apply them. The episodes are deep and heavily-researched, uncovering the full histories behind household names you thought you already knew like Rolex, Amazon, Starbucks, or NVIDIA. Enjoy!

1 Loka 20152min

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