Amazon yanks NYC HQ2: What’s next for the online giant?
“The Big Apple” may have lost its luster after Amazon’s decision to ditch New York City for their new HQ2, but the e-commerce giant itself will be just fine, according to one tech sector expert.
“I would say it’s a neutral for Amazon,” said Loup Ventures Managing Director Gene Munster to FOXBusiness’ Stuart Varney on Friday. “They just simply move on. They re-appropriate to Nashville and to Virginia.”
The Seattle-based company’s HQ2 was to be built in the Long Island City neighborhood of Queens and would have brought 25,000 high-paying jobs to the city. However, the project faced a slew of opposition over its up to $3 billion worth of tax incentives from the city and state. Yet, New Yorkers were feeling relatively upbeat on the online tech giant's arrival. A recent poll conducted by Siena College Research Institute revealed 56 percent of local taxpayers actually approved of the deal. Because of this, Munster expects major pushback “all around.”
What’s more, he said, it puts the city's future in jeopardy.
“These tech companies are taking over new industries. And as you think about building the city, you ultimately want to have companies that are on the right growth trajectory.”
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The company said in a statement that the “commitment to build a new headquarters requires positive, collaborative relationships with state and local elected officials” that are willing to give the company long-term support.
“We are disappointed to have reached this conclusion,” the company said in a blog post. “We love New York, its incomparable dynamism, people and culture — and particularly the community of Long Island City, where we have gotten to know so many optimistic, forward-leaning community leaders, small business owners and residents.”
In Munster’s opinion politics should not be playing into big tech.
