Bezos buys Washington Post. Really.

[fjtorres]

Jeff Bezos, the chief executive of Amazon.com, entered an agreement with the Washington Post Co. Monday to buy its newspaper publishing businesses for $250 million, including its flagship newspaper.

The purchaser is an entity that belongs to Bezos and is not Amazon.com. [...]

In a letter to Post employees, in which Bezos acknowledged that many would greet his purchase with apprehension, he noted that the paper's editorial leadership would continue to lead day-to-day activities, as he remains focused on his "day job" at Amazon.

Link: Amazon's CEO to buy Washington Post for $250M (CNet).

The deal does not include Slate. (Too bad; it would have resulted in a spectacular explosion of brains.)

[image by Adam Glanzman via Flickr]

[Canuck_in_Japan]

Did he get free shipping?

[frahse]

Well, the next move could be Apple acquiring the New York Times with their pocket change.
Could throw in the LA Times as well. It shouldn't cost much. Maybe a Prime membership.

Then, for sure, the politicians would take heed of Apple's concerns in the judicial area.

[fjtorres]

Originally Posted by frahse

Well, the next move could be Apple acquiring the New York Times with their pocket change.
Could throw in the LA Times as well. It shouldn't cost much. Maybe a Prime membership.

Then, for sure, the politicians would take heed of Apple's concerns in the judicial area.

Apple doesn't need to buy the NYT. They get all the fawning they need for free.

[wizwor]

He is going to make WAPO a newspaper designed for Kindle consumption. By showcasing his vision, he will encourage others to follow -- or be left behind.

[fjtorres]

Straight from the horse's mouth:
http://m.washingtonpost.com/national...f4d_story.html

The Washington Post Co.’s newspaper division, of which the Post newspaper is the most prominent part, has suffered a 44 percent decline in operating revenue over the past six years. Although the paper is one of the most popular news sources online, print circulation has dwindled, too, falling an additional 7 percent daily and Sundays during the first half of this year.

Post publisher Katharine Weymouth — Graham’s niece and the fourth generation of her family involved in the newspaper — will remain as publisher and chief executive of the Bezos-owned Post; executive editor Martin Baron will continue in his job. No layoffs are contemplated as a result of the transaction among the paper’s 2,000 employees, who were told of the sale at a company-wide meeting Monday afternoon.

Bezos said he would maintain his home in Seattle and would delegate the paper’s daily operations to its existing management. “I have a fantastic day job that I love,” he said.

A bio and history lesson are included.

[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.

As an off and on Washington Post reader, I now have an interest in Amazon not tanking financially. Because if Amazon does tank, then Bezos may be prompted to monetize his Washington DC investment.

In as much as Bezos is doing this out of self-interest, I don't think it is directly financial. But the move obviously helps Amazon where Washington DC politics is important. Bezos doesn't need to use his power to shape news coverage. Just the fear that he could reduces the chances of ever getting unwanted antitrust attention.

[fjtorres]

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.

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/

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."

The Post might be something of a trophy buy--it cost him 1% of his net--and a way to discreetly crow a bit.

[speakingtohe]

Shall we await the Bezos for president campaign? Could happen.

[wizwor]

Originally Posted by speakingtohe

Shall we await the Bezos for president campaign? Could happen.

Politicians promise a lot, Bezos DELIVERS a lot.

[SeaKing]

My expectation is that Bezos (and his people) will start scrutinizing and going over the papers financials and allocation of resources and start tweaking them in a business like manner.
Things that probably will happen:
1) go to a defined contribution pension plan
2) make the staff work. (How many columns a week do you write? What are you doing the rest of the time?)
3) "you seem to write a lot about A. Lets look at B. and C. as well. And I expect some other suggestions as well."
4) "I suspect that you all have been fans of Obamacare, so we are moving to it especially after retirement.
5) "Oh, he wants to leave since he doesn't get respect anymore, well there are plenty of young hungry journalists available. Cheaper too."
6) "Well the paper's net went down 6%, so we have to cut expenses and this proportion will come from salaries. (... there will be 3, no make that 5 tiers of reductions with a few really productive people maintaining their current levels.)"
7) "Yes you are my "managing editor," now manage! I have faith in you that you can do the job."

I don't think Bezos will be running a Charity at the WaPo.

[HansTWN]

Originally Posted by SeaKing

My expectation is that Bezos (and his people) will start scrutinizing and going over the papers financials and allocation of resources and start tweaking them in a business like manner.
Things that probably will happen:
1) go to a defined contribution pension plan
2) make the staff work. (How many columns a week do you write? What are you doing the rest of the time?)
3) "you seem to write a lot about A. Lets look at B. and C. as well. And I expect some other suggestions as well."
4) "I suspect that you all have been fans of Obamacare, so we are moving to it especially after retirement.
5) "Oh, he wants to leave since he doesn't get respect anymore, well there are plenty of young hungry journalists available. Cheaper too."
6) "Well the paper's net went down 6%, so we have to cut expenses and this proportion will come from salaries. (... there will be 3, no make that 5 tiers of reductions with a few really productive people maintaining their current levels.)"
7) "Yes you are my "managing editor," now manage! I have faith in you that you can do the job."

I don't think Bezos will be running a Charity at the WaPo.

Agreed. And Bezos will build a better and more effective web presence.

[Kumabjorn]

Me thinks we will se a walled garden, I don't think there is any other way to make money from news these days. You want curated, edited, fact checked news from reliable sources? well, you will have to pay for it, the way it always was. Now, how to get there? That is the question. I suspect Bezos has some ideas for answers.

[tubemonkey]

I get all my news from MNN

[kennyc]

Originally Posted by Canuck_in_Japan

Did he get free shipping?