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Acquired

Interview: Hamilton Helmer & Chenyi Shi on How to Build an AWS-Like Second Business

03 Apr 2023

Transcription

Full Episode

0.47 - 9.6 Hamilton Helmer

Oh, I'm sorry. Before you keep going, is this going to be a question of is this a scale economy or network economy? Yes. Oh, damn. Go for it, Jenny, because I don't know the answer.

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11.002 - 12.304 David Rosenthal

We've stumped the experts.

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12.544 - 28.502 Unknown

Who got the truth? Is it you? Is it you? Is it you? Who got the truth now? Is it you? Is it you? Is it you? Sit me down. Say it straight. Another story on the way. Who got the truth?

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29.292 - 50.052 Ben Gilbert

Welcome to this special episode of Acquired, the podcast about great technology companies and the stories and playbooks behind them. I'm Ben Gilbert. I'm David Rosenthal. And we are your hosts. Eight years ago, I pitched David on an idea for two different podcasts. One was on grading technology acquisitions that became Acquired.

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50.632 - 74.583 Ben Gilbert

The other idea was to do episodes on companies that managed to create two separate multi-billion dollar innovations. Our hypothesis is that most companies have really one big founding insight and that the rest of the company's history is just drafting on that. Well, Hamilton Helmer and Chen Yixi, friends of the show, coincidentally have been exploring literally exactly that idea.

74.623 - 95.092 Ben Gilbert

And they've been asking questions like what percent of the profits of the biggest companies in the world came from a second business line? They have a new framework, in addition to Seven Powers, to help founders answer the transforming question. If I were to expand the scope of what my company does, how should I go about it?

95.713 - 115.06 David Rosenthal

And this is a particularly interesting time to do this episode with them, because I feel like a bunch of the companies we've covered recently on the show... This has been like a key part of the story, whether it's Amazon and AWS or LVMH and how all the businesses, LVMH itself, have been transformed over the years.

115.44 - 124.993 David Rosenthal

And even particularly, I'm thinking about Nintendo and our Nintendo series and going from like a supplier for the Yakuza to dominant video game console manufacturer.

125.159 - 146.56 Ben Gilbert

Yep. And David, I can say you and I have already recorded this interview with Chen Yi and Hamilton and like we address exactly that. So listeners, this was a really fun one to do. And having Hamilton and Chen Yi on, it just concretizes a lot of the very abstract thinking that we sort of banter about on the show, but never quite crystallize. They crystallize it for us. Yep.

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