Why Citi says Amazon should split into 2 companies

Citi Research believes Amazon should separate its retail and Amazon Web Services businesses, according to CNBC.

If Amazon were to split into two companies, it would drive shareholder value and reduce the risk of regulation, according to Citi.

"By separating the retail and AWS businesses, Amazon could minimize or avoid the risk of increased regulatory pressure," said Citi Research analyst Mark May, according to CNBC.

Citi said separating into two businesses would also help Amazon better align stock-based compensation, plan for CEO Jeff Bezos' succession, take advantage of the HQ2 planning, minimize conflicts of interest, improve shareholder selection, achieve a better valuation and be more attractive for potential acquisitions.

Access the full CNBC article here.

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