July 2021
Case
HBS Case Collection

Amazon HQ2

Format:Print
| Language:English
| Pages:13

Abstract

Amazon’s failed bid for a second headquarters location (“HQ2”) in Long Island City, New York offers many lessons for negotiators looking to avoid similar high-profile defeats in strategically important deals. The company’s project – which promised to bring billions of dollars in net new tax revenue and thousands of jobs to the city – initially enjoyed widespread support on the ground, alongside vocal advocacy from political elites at the state and local level. But after the proposal was announced, a relatively small cohort of passionate opponents organized to pressure a key set of lawmakers into opposing the deal, ultimately leading the company to withdraw its offer. Amazon’s HQ2 derailment at the hands of these well-organized activists, and its failure to mobilize its broad base of support in useful ways, mark a striking example of the potential pitfalls dealmakers face when negotiating large-scale projects in the public eye.