Amazon.com founder Jeff Bezos has purchased the Washington Post. The dot-com billionaire’s investment in the newspaper makes it one of several businesses that operate under Bezos’ ownership, almost all of which are unrelated to his success with the well-known dot-com retailer.
The newspaper is one of America’s most well known publishing outlets, playing an instrumental role in reporting on American historical events such as the Watergate scandal, amongst others. It remains one of the United States’ most trusted papers, largely due to its immense access to the country’s political leaders.
Despite its immense success as a journalistic medium, the Washington Post has been trapped in a series of losing battles as a business. The newspaper’s revenue dropped by 44 percent over the past six years as digital publishers and new media took most of its paying audience.
Sold for just $250 million, the newspaper is an inexpensive acquisition for Bezos. At a price point that barely exceeds that of a large metropolitan paper – figures put it at approximately four times the average price for a metro newspaper – the Post’s poor performance as a business makes it an affordable investment for the billionaire.
Washington Post chairman and chief executive Donald Graham claimed that the sale was due to his obligation to maximise shareholder earnings, claiming that he ‘could no, in good conscience, continue to lose his shareholders’ money.’
Bezos’ immense experience running a dot-com business could help the newspaper to tackle the new media world. Many of the Washington Post’s top competitors are based solely online, primarily the political blogs that provide the paper’s website with a large amount of its research material.
The Washington Post is the most widely read newspaper in Washington DC, as well as one of the oldest. The newspaper was founded in 1877.
