Amazon’s search for a second HQ is officially over!
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Amazon’s search for a second HQ is officially over!

It’s official: tech titan Amazon’s search for a second headquarters is over! The company has been a source of frenzied speculation this year, after it announced that it would be opening a second headquarters in the U.S., creating as many as 50,000 new jobs and investing billions. Cities all across the country vied for the position, and now, the results are in.

Despite 2018’s tech backlash, Amazon’s share price has appreciated by 41% so far this year

graph 1511 amazon

Source: Yahoo Finance

Amazon, the undisputed king of online retail and cloud computing in the west, has announced that it will be building not one, but two additional headquarters. The cities that tied for the prize are New York and Arlington, Virginia. Amazon said it will start hiring in 2019, and it’s looking to spend big.

Between them, the two new headquarters will add 50,000 jobs. And Amazon is planning to spend $5 billion on the sites. In Arlington, the new HQ will be located in National Landing, and in New York, it will be based in the Long Island City neighbourhood in Queens. Both cities have offered “performance-based incentives” to the company, which will be paid out in the event that Amazon can create 25,000 jobs. In Arlington, that incentive stands at $573 million, but comes with the stipulation that the jobs must have an “average wage of over $150,000”. In New York, the promised sum is much larger - $1.525 billion.

Jeff Bezos, Amazon’s founder and CEO, has long touted the benefits that Amazon has brought to Seattle’s economy (Seattle being the site of the company’s first HQ). Competition for Amazon’s new HQs were based on his company being able to recreate the magic elsewhere.

In a statement, Mr. Bezos said: “We are excited to build new headquarters in New York City and Northern Virginia. These two locations will allow us to attract world-class talent that will help us to continue inventing for customers for years to come.”

Disclosure

Dominion holds Amazon in its Global Trends Ecommerce Fund.


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