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Originally Posted by SteveEisenberg
Note that Bezos is buying the paper personally. This means that, unless he feels otherwise, the Post no longer needs to make a profit.
What I hope is what I think: Bezos did not buy this with the thought it was a good investment, but as a semi-charitable endeavor. Best case is that Bezos will be willing to, within reason, fund loses.
Note that the Washington Post is still profitable, but has done that while repeatedly laying off journalists. At least for a while, I think that will stop.
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Over at Cnet the expectation is that Bezos is just looking to be a sugar daddy, at least initially.
http://news.cnet.com/8301-1023_3-575...shington-post/
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This bodes well for the staff of the venerable Washington Post, which suffered layoffs, buyouts, and a talent drain as the Internet disrupted the newspaper business. A Bezos regime could mean that the paper will be less concerned about profitability and more focused on becoming the biggest and most influential news media outlet on the planet.
It would be out of character for Bezos to become a passive owner for such an iconic brand. Part of the intrigue of owning The Washington Post is taking on another industry and seeing if he can shake it up in some fundamental ways.
In his memo to Washington Post employees, Bezos wrote that he "won't be leading The Washington Post day-to-day" and that the "paper's duty will remain to its readers and not to the private interests of its owners." He added, "We will continue to follow the truth wherever it leads, and we'll work hard not to make mistakes. When we do, we will own up to them quickly and completely."
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The Post might be something of a trophy buy--it cost him 1% of his net--and a way to discreetly crow a bit.