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Microsoft loses $17billion in value in just FIVE minutes after Pentagon deal injunction

Microsoft loses $17billion in value in just FIVE minutes after judge grants Amazon request to block their Pentagon contract amid feud between Donald Trump and owner Jeff Bezos

  • A federal court on Thursday ordered a temporary halt in Microsoft’s work on a $10 billion Pentagon cloud contract
  • Amazon, who was initially expected to win the contract, requested the court injunction last month after claiming the process was tainted by politics
  • The temporary injunction stops the Department of Defense from starting work on the contract known as JEDI 
  • Bezos’ company is now trying to depose Trump and other officials on how the tech giant was shut out of the contract 
  • Microsoft shares lost $17billion in market value in five minutes on Thursday
  • As of Thursday’s close Microsoft’s stock sat at a value of $183.71 

Microsoft shares plummeted on Thursday losing $17billion in value just five minutes after a federal judge ordered a temporary injunction on the company’s JEDI contract with the Pentagon.

The technology company’s shares dropped from $185.40 at 2.11pm EST to an intraday low of $183.16 by 2.16pm.

The stock suffered a 1% loss. That drop saw the company lose $17billion from its market capitalization, according to Market Insider. 

As of Thursday’s close Microsoft’s stock sat at a value of $183.71.

The temporary injunction was issued Thursday after Amazon claimed that President Trump’s bias against Jeff Bezos prevented the company’s efforts to win the $10billion Pentagon cloud contract that Microsoft won.

Microsoft shares plummeted one percent on Thursday losing $17billion in market value in just five minutes after a federal judge ordered a temporary injunction on the company’s JEDI contract with the Pentagon. As of Thursday’s close Microsoft’s stock sat at a value of $183.71

President Trump

Jeff Bezos

A federal court has ordered a temporary halt in Microsoft’s work on a $10billion Pentagon cloud contract after rival Amazon claimed President Trump’s bias against Jeff Bezos hurt its chances to win the project 

Microsoft is the third most valuable company in the world with a current market value of about $1.4trillion, according to Bloomberg data.

Amazon shares rose briefly following the injunction announcement on Thursday, but then turned negative.

Amazon was initially expected to win that contract with the Department of Defense that will build a cloud for the storage and management of military and defense data.

After they lost it in a surprise upset, the company requested a court injunction last month, claiming the process was tainted with politics.

Amazon claims Trump and other officials shut the company out of the contract due to the president’s personal vendetta against Bezos. 

The documents requesting the block and the judge’s decision to issue the temporary injunction are sealed by the court for unspecified reasons.   

Microsoft said in a statement that it was disappointed by the additional delay, but said it believes that it will ultimately be allowed to move forward with the project. Microsoft CEO Satya Nadella pictured above

Microsoft said in a statement that it was disappointed by the additional delay, but said it believes that it will ultimately be allowed to move forward with the project. Microsoft CEO Satya Nadella pictured above

Amazon shares rose briefly following the injunction announcement n Thursday, but then turned negative

Amazon shares rose briefly following the injunction announcement n Thursday, but then turned negative

Microsoft said in a statement that it was disappointed by the additional delay, but said it believes that it will ultimately be allowed to move forward with the project. 

The Pentagon and Amazon did not immediately respond to requests for comment. 

The 10-year contract for the Joint Enterprise Defense Infrastructure (JEDI) program will ultimately see all military branches sharing information in a cloud-based system boosted by artificial intelligence. 

Amazon was considered the lead contender to provide technology for JEDI, with Amazon Web Services dominating the cloud computing arena and the company already providing classified servers for other government agencies including the CIA.  

The 10-year contract for the Joint Enterprise Defense Infrastructure (JEDI) program will ultimately see all military branches sharing information in a cloud-based system boosted by artificial intelligence

The 10-year contract for the Joint Enterprise Defense Infrastructure (JEDI) program will ultimately see all military branches sharing information in a cloud-based system boosted by artificial intelligence 

An earlier court filing by Amazon detailed alleged errors that ended with Microsoft being chosen over its AWS cloud computing division. 

The Pentagon’s mistakes in the contract were ‘hard to understand and impossible to assess’ when separated from Trump’s ‘repeatedly expressed determination to, in the words of the president himself, ‘screw Amazon,” court documents filed by Amazon argued.

Bezos, who also owns The Washington Post, is a frequent target of the US president, who claims the newspaper is biased against him.

The bid protest filed in US Court of Federal Claims urges that the rival JEDI bids be re-evaluated and a new decision reached.

As a condition of the injunction, Amazon was directed to provide $42 million that would be used to cover any costs or damages incurred if it is determined that the injunction was issued wrongly.

The judge told Amazon and the Pentagon to confer by February 27 on what portions of the opinion can be released publicly.  

Read more at DailyMail.co.uk


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