Publications
Publications
- January 2022
- HBS Case Collection
Kornit Digital: The Amazon Warrants (C)
By: Benjamin C. Esty, E. Scott Mayfield and Daniel Fisher
Abstract
As of 12/31/21, Amazon held $22 billion of equity and warrants in related companies. In fact, it often requests a free grant of warrants when it enters into a new commercial agreement with a supplier. Over the past 20 years, Amazon has gotten warrants almost 20 publicly traded companies and more than 75 private companies; in a few instances, it has gotten multiple grants from a single firm. Combined, Amazon held $3.4 billion of warrants as of year-end 2021. This case explores one of the recent transactions in which Amazon requested warrants as part of signing a new commercial agreement with Kornit Digital, a small, but rapidly growing digital printing company based in Israel.
Keywords
Valuation; Value Creation; Consumer Behavior; Negotiation; Distribution; Ownership; Partners and Partnerships; Business Strategy; Equity; Distribution Industry; Food and Beverage Industry; United States
Citation
Esty, Benjamin C., E. Scott Mayfield, and Daniel Fisher. "Kornit Digital: The Amazon Warrants (C)." Harvard Business School Supplement 222-045, January 2022.