COME OUT OF THE SHOW.
THE TOP STORY THIS HALF HOUR,
THE FUTURE OF AMAZON, CEO JEFF
BEZOS AND HIS WIFE MCKENZIE
ANNOUNCING YESTERDAY THAT
THEY'RE DIVORCING AFTER 25 YEARS
OF MARRIAGE.
THE SPLIT COULD HAVE MAJOR
IMPLICATIONS FOR AMAZON.
JEFF BEZOS IS THE RICHEST MAN IN
THE WORLD, WITH A NET WORTH OF
AROUND $137 BILLION.
THE WALL STREET JOURNAL SAYS
THAT IF MCKENZIE ENDS UP WITH A
PORTION OF HER HUSBAND'S STAKE
IN AMAZON, IT'S 16.3% AT MOST
RECENT COUNT, THAT THAT COULD
HAVE AN IMPACT ON THE COMPANY.
JOINING ME NOW, FOX NEWS LEGAL
ANALYST, DEFENSE ATTORNEY
MERCEDES CALLWIN AND TECHNOLOGY
REPORTER TIM HIGGINS.
TIM, YOU'RE AT THE CES
CONVENTION IN LAS VEGAS, AMAZON
GETTING A LOT OF ATTENTION.
WHAT DO INVESTORS NEED TO KNOW?
WHY IS THIS A BUSINESS STORY?
EXPLAIN IT.
>> WELL, IT'S IMPORTANT TO
INVESTORS BECAUSE IF HE'S GOT TO
GET RID OF SOME OF THE SHARES,
IT COULD CHANGE SOME OF THE
CONTROL OF THE COMPANY IF HIS
EX-WIFE, SOON TO BE EX-WIFE HAVE
OTHER VIEWS THAT COULD INFLUENCE
THE BOARD AND WE'VE SEEN IN PAST
DIVORCES FROM HIGH RANKING CEOS
OR OTHER EXECUTIVES, THESE
THINGS CAN GET MESSY.
INFORMATION CAN COME OUT IN THE
PROCEEDINGS THAT'S EMBARRASSING
TO THE COMPANY, BECOMES A
DISTRACTION.
DAGEN: I WANT TO POINT OUT,
SINCE YOU ARE IN LAS
VEGAS ELAINE WYNN'S DIVORCE FROM
WYNN RESORTS FOUNDER STEVE WYNN
IT WAS ABOUT EIGHT YEARS AGO,
THAT ACTUALLY DID RESULT IN HER
PUTTING -- BASED ON THE
OWNERSHIP STAKE, THAT SHE WOUND
UP WITH, TRYING TO FORCE CHANGES
ON WYNN RESORTS.
>> YES, THAT'S A GOOD EXAMPLE.
THE FAMILY THAT OWNED THE
DODGERS BASEBALL TEAM ENDED UP
SELLING.
THAT'S ANOTHER EXAMPLE.
THESE THINGS CAN HAVE
RAMIFICATIONS AND IT'S REALLY AT
THIS POINT UNKNOWN WHAT THE
ARRANGEMENTS BETWEEN THE BEZOS
ARE AND SO WE'LL BE LOOKING FOR
THAT VERY CLOSELY.
DAGEN: HER SEE
DAGEN: MER SEE
DAGEN: MERCEEE
DAGEN: MERCEDES, I WANT YOU TO
WEIGH IN ON THIS.
THEY ANNOUNCED AS JAMES POINTED
OUT, IT SEEMS LIKE AN AMICABLE
STATEMENT.
TMZ IS REPORTING THIS MORNING
THAT JEFF AND MCKENZIE BEZOS DID
NOT HAVE A PREUP IN
NOT HAVE A PRENU IN
NOT HAVE A PRENUPTN
NOT HAVE A PRENUPTUAL AGREEMENT.
IT'S NOT UNUSUAL TO PUT TOGETHER
A DEAL AFTER YOU'RE MARRIED,
AFTER THE FORTUNE BUILDS.
WHAT SHOULD WE BE PAYING
ATTENTION TO.
IT LOOKS LIKE EVERYTHING IS
HUNGY
HUNKY DORY DESPITE THE --
>> WHERE IS THE VENUE, WHERE IS
IT GOING TO BE?
MANY INDIVIDUALS SAY IT'S GOING
TO BE IN WASHINGTON STATE WHICH
IS A COMMUNITY PROPERTY STATE
WHICH MEANS IT'S RIGHT DOWN THE
MIDDLE.
HE STARTED AMAZON DURING THE
MARRIAGE.
DOLLAR FOR DOLLAR IT WAS AMASSED
DURING THE MARRIAGE, RIGHT DOWN
THE MIDDLE, 50% WOULD GO TO THE
SPOUSE, SPLITTING IT BETWEEN THE
HOUSES, 100%.
HE'S GOT THE CONTROL OF THE
COMPANY.
WE'VE GOT THE FLY IN THE
OINTMENT WHICH IS THE OTHER
WOMAN.
THAT WILL MUCK IT UP.
WE STARTED TALKING ABOUT THIS
BEFORE THE START OF THE SEGMENT.
IT'S LIKE LOOKS SO NICE AND
PLEASANT AND THEY HAVE THIS
WONDERFUL STATEMENT OUT THERE.
STANDARD OPERATING PROCEDURE.
>> COLLABORATING.
>> STANDARD OPERATING PROCEDURE,
MAKE IT NICE AND LOVELY BUT PUT
THE BOXING GLOVES ON BECAUSE
WE'RE GOING TO DUKE IT OUT FOR A
LOT OF MONEY, FOR CHILD SUPPORT,
FOR ALL THAT.
DAGEN: IN SEPTEMBER THEY
ANNOUNCED THEY WERE FORMING THE
DAY ONE FUND, NAMED AFTER
AMAZON'S STARTUP WITH AN INITIAL
ENDOWMENT OF $2 MILLION.
THEY CELEBRATED THEIR 25th
WEDDING ANNIVERSARY.
THERE WAS A LOT GOING ON WITH
THEM AS A COUPLE AND THEN THIS
REVELATION.
I'M GOING TO PUT YOU ON THE
SPOT.
IT DOES LOOK LIKE THE BEZOS WERE
FORCED TO ANNOUNCE THIS BECAUSE
THERE WAS AN INVESTIGATION THAT
IT WAS GOING TO COME OUT, THE
NATIONAL ENQUIRER LOOKING INTO
IT, IT WAS GOING TO COME OUT
THAT HE WAS DATING THIS OTHER
WOMAN.
SO IT DOES RAISE THE ISSUE OF
WHAT IS THE COMPANY -- WHAT IS
HE REQUIRED TO DISCLOSE IF IT
HAS A MATERIAL IMPACT ON THE
SHARE PRICE AND ON THE OWNERSHIP
STAKE.
>> THAT'S SUCH A GREAT POINT.
FRANKLY, ANYTHING THAT HE COMES
OUT WITH A STATEMENT THAT CAN
IMPACT THE SHARES OF STOCK AND
THE VALUE OF IT CAN RESULT IN A
SHAREHOLDER SUIT.
WE SAW THAT WITH MARTHA STEWART
WHEN SHE PROFESSED HER INNOCENCE
AND SUDDENLY SHE WAS CHARGED
WITH STOCK FRAUD AND WHATNOT.
DAGEN: SHE WAS ONLY CHARGED
WITH CRIMINALLY SHE WAS
CONVICTED OF OBSTRUCTION OF
JUSTICE AND LYING TO
INVESTIGATORS.
SHE WAS NEVER CRIMINALLY CHARGED
WITH INSIDER TRADING, CIVILLY,
YES, CRIMINALLY, NO.
THAT'S A SEPARATE STORY.
>> BUT THAT'S SO IMPORTANT.
SO WHEN YOU HAVE A CEO THAT HAS
THIS TYPE OF CONTROVERSY AND HE
MAKES A STATEMENT, WHETHER HE
PROFESSES HIS INNOCENCE AND SAYS
I NEVER HAD THIS DATING
RELATIONSHIP, IT WAS DURING THE
TIME WE WERE SEPARATED, HOWEVER
IT COMES OUT, IF IT'S OPPOSED OR
THERE'S OPPOSING EVIDENCE SAYING
THAT'S NOT TRUE, THAT CAN IMPACT
THE VALUE OF HIS STOCK.
WE HAVE ISSUES FOR HIM.
>> I UNDERSTAND WE'RE
SPECULATING AT THIS POINT.
I'M WONDERING AS YOU LOOK AT
MCKENZIE BEZOS' BUSINESS
BACKGROUND, IS THERE REASON TO
THINK THAT SHE MIGHT WANT TO
PLAY A ROLE AS AN ACTIVE
INVESTOR IN THIS COMPANY, AS AN
ACTIVE MANAGER, PERHAPS?
>> IF YOU LOOK AT THE FOUNDING
OF THE COMPANY, SHE'S DEFINITELY
THERE IN THE EARLY DAYS.
REMEMBER, WHEN HE WAS MOVING
FROM THE EAST COAST TOWARDS THE
WEST COAST, AS THEY WERE
DRIVING, SHE DROVE THE CAR AS HE
WAS WRITING THE BUSINESS PLAN
FOR THE COMPANY THAT WOULD
ULTIMATELY BE KNOWN AS AMAZON.
SHE'S BEEN THERE FROM THE EARLY
DAYS.
FOCUSED LATER IN LIFE ON HER
WRITING, HER BOOKS.
LITTLE UNCLEAR EXACTLY WHAT --
MAYBE WHAT ROLE SHE MIGHT HAVE
IN THIS KIND OF NEW WORLD FOR
HER.
DAGEN: SHE WENT TO PRINCETON
WHICH I THINK IS JEFF BEZOS'AL
MA MATTER.
SHE MET HIM AT THE HEDGE FUND
WHERE HE WAS WORKING BEFORE THE
578 SON FUNDING.
SHE WORKED AT THE COMPANY AFTER
HE FOUNDED IT.
SHE WORKED IN ACCOUNTING AT
AMAZON WHEN HE FOUNDED IT.
>> THERE'S EVIDENCE SHE WAS
INVOLVED IN THE IPO ROAD SHOW.
SHE WAS THERE.
INVESTORS REMEMBER MEETING HER.
SHE WAS INVOLVED.
I GUESS MY QUESTION IS, DOES SHE
HAVE ANY REASON TO SCORCH THE
EARTH HERE?
THERE'S A LOT OF EMOTION
INVOLVED.
FROM A BUSINESS STANDPOINT, WHAT
IS SHE GOING TO LOOK TO DO?
>> CERTAINLY THERE'S GOING TO BE
A HUGE PAYOUT, NUMBER ONE.
THERE ARE FOUR CHILDREN IN THE
MIX.
THERE HAS TO BE A LEVEL OF
SENSITIVITY TOWARDS THOSE
CHILDREN.
SO YOU START TO SEE EVEN THOUGH
IT CAN GET REALLY NASTY AND VERY
AGGRESSIVE, ATTEND OF THE DAY
THE SPOUSES HAVE TO COME
TOGETHER AND SAY WE'VE GOT TO DO
THIS FOR THE SAKE OF THE
CHILDREN.
DAGEN: REAL QUICK, GIVE YOU A
FEW SECONDS TO SAY SOME FINAL
WORDS BEFORE WE GO.
>> THIS COMES AT A TIME WHERE
AMAZON IS LOOKING LIKE THE MORE
STABLE OF THE TECH COMPANIES.
YOU SAW APPLE FALLING OFF THE
CLIFF WITH CONCERNS ABOUT THE
QUARTER AND AMAZON WAS KIND OF
THE DARLING HERE IN THE TECH
WORLD ESPECIALLY AT CES WHERE
THEIR NAME IS EVERYWHERE AS
THEY'RE PUSHING THEIR VOICE
ASSISTANT ALEXA.
DAGEN: THUMBS UP FOR YOU BEING
HERE SO EARLY FOR US.
GREAT INSIGHT AS ALWAYS, TIM
HIGGINS.
I'M GOING TO GO BACK TO MERCEDES
REALLY QUICKLY.
ON THIS NOTE, THERE'S SO MUCH AT
STAKE.
THERE ARE FIVE PROPERTIES.
HE'S ONE OF THE LARGEST -- JEFF
BEZOS AND FAMILY ARE ONE OF THE
LARGEST LAND OWNERS IN THE
UNITED STATES.
FIVE ESTATES.
400 ACRES.
$137 BILLION.
IT SEEMS ALMOST UNIMAGINABLE
THAT HE WOULDN'T HAVE A PRENUP
OR POST NUP IN PLACE.
HE HAD MONEY WHEN THEY GOT
MARRIED AND CERTAINLY A LOT MORE
MONEY BEING THE RICHEST MAN IN
THE COUNTRY.
>> THERE ISN'T ANY EVIDENCE OF
IT.
EVEN IF THERE IS A POST NUP ALL
OF THAT COULD BE CHALLENGED IN
COURT.
UNDUE DURESS, WHATNOT, I WAS
FORCED TO DO THIS.
THERE'S SO MANY CHALLENGES TO
THOSE AGREEMENTS.
MANY OF THEM FALL TO THE
WAYSIDE, UNFORTUNATELY.
>> I'M WORRIED ABOUT THE
DILUTION OF SHARES.
YOU NEED TO DILUTE OR YOU NEED
TO SELL OFF SHARES IN ORDER TO
PAY OFF ANY SETTLEMENT IN THE
FUTURE.
THEY SEEM TO BE PARTNERS IN THE
FUTURE, FRIENDS FOREVER.
WE'LL SEE HOW LONG THAT.
DAGEN: WITH THE REPORT, I THINK
WE SHOULD SAY THIS W. THE REPORT
OF THE GIRLFRIEND, YOU NEVER
KNOW WHAT WAS GOING ON WITH THE
MARITAL RELATIONSHIP.
YOU JUST DON'T KNOW THE STORY.
YOU DON'T KNOW WHO KNEW WHAT AND
WHEN AND IT WILL COME OUT IN THE
WASH, IN THE COMING WEEKS.
>> ESPECIALLY WITH THE MEDIA
INTEREST.
YOU KNOW THERE HAS TO BE
EVIDENCE OUT THERE, IN THE EVENT
HE COMES FORWARD AND SAYS I'M
TOTALLY INNOCENT OF WHATEVER I'M
BEING ALLEGED AGAINST, COULD NOT
BE SO.