Each month, “Ammirati on Innovation” episodes will look at ways that the disruptive-startup mentality is spreading beyond young entrepreneurs to big established corporations. Serial entrepreneur, venture capitalist and Carnegie Mellon B-school professor Sean Ammirati, who sits at the intersection of these high-change dynamics, provides insight.

Episode 9

In this episode, Sean and I discuss Slack. He says Slack has basically been slashed in half – $42 a share vs. $22 a share. Its market cap is $12 billion. Sean says what would these statistics be worth inside Oracle, Salesforce, Microsoft, or Google. He says that with some of the assets Microsoft has, LinkedIn plus Slack would be a very good combination. Sean says LinkedIn bought Lynda, a corporate education company, for $1.5 billion, but so far it’s been an accretive acquisition.

He speculates Walmart has the potential to buy one or two very large companies – including FedEx, which he says would be a good acquisition – and maybe Shopify too. He says we’ll see a further investment in Walmart Labs, including new business models.

He then turns to Amazon and AWS. He says he just can’t wrap his head around why Amazon won’t spin out AWS this year. He says he’s seen all the denials from the management team – but it just doesn’t make sense that they don’t want to do this. Sean says how does Walmart feel about cutting checks to AWS? I say that AWS will finish the calendar year with about $38 billion in revenue – placing them among the top seven tech companies.

Sean says he’s not an economist, but his conclusion is that often companies are wrong. They often deliver with confidence and that confidence often turns out to be incorrect. The market almost certainly needs to correct in 2020.

Sean’s podcast is Agile Giants, and it’s on all the major platforms.

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