Amazon Founder Jeff Bezos Acquires Washington Post for $250M in Cash - HotHardware
Amazon Founder Jeff Bezos Acquires Washington Post for $250M in Cash

Amazon Founder Jeff Bezos Acquires Washington Post for $250M in Cash

How's this for perspective? A two-year old startup by the name of Instagram sold to Facebook for $1 billion. A newspaper housed in a nation's capitol city, which has been around over a century, has just sold for one quarter of that. It's a strange, wild, and completely digital world that we're living in today, which may help explain why the founder of Amazon has paid $250 million in cash for The Washington Post. It's important to note that Amazon isn't buying the paper, but Bezos himself. Moreover, this isn't the first time Bezos has invested in the news business; he has also invested in the Business Insider website.

The transfer is expected to be completed within two months, making Bezos the sole owner. The Post Co. will get a new name, and it will continue "as a publicly traded company without The Post." Its current owners have stated that Bezos simply won with the highest bid, and noted that while it has innovated over the past seven years, revenues have continued to decline. In a way, it sounds as if the Graham family has thrown their hands up, frustrated with their inability to turn around a business that is declining the world over. And we can't say we blame them for washing their hands of it.


Stock Kindle imagery used to highlight The New York Times...

It's unclear what Bezos plans to do with the paper, but he had made clear that a) it will not swing to his own political interests and b) that he won't run the day-to-day operations. Instead, he may seek to integrate it with Amazon's ecosystem in some way. Amazon has made some impressive moves in both the hardware and ecosystem realms, and having this kind of ace in the hole could mean big things ahead for Kindle.
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Jeff, I've got this little publication, you likely could sneeze out an acquisition of... no wait, it's not so little I guess. Maybe just a mild cough... :)

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the way things are so digital now is weird...

250 Million for the washington post, but, instagram for 1 billion?...

That just seems a little ludicrous to me, but I guess in a year or two it wont... I kind of lag behind like that sometimes.

Anyway, im sure in the early 90s people would have expected this t be bonkers...

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Some of this stuff is really crazy. Instagram was just an app to take and post pictures. Very simple, something any of these companies could pull off. But nope. They rather pay 1 billion for something like that. I haven't a clue what they are thinking in these companies. It's like the only way they can innovate is to buy someone out.

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Agreed, there is stark contrast here. On one hand a bellwether of an old time media house with serious clout and on the other a simple startup company. It is a little nutty for sure.

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I've heard that the NY times makes between $150-175 million yearly from online subscriptions only but pays out over $200 million annually in costs. I wonder what the numbers are like for the Post.

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In many ways this makes sense. Print news and media will soon be gone and Mr. Bezos is on a Prime (pun intended) position to transition print to digital for tablet and r-reader consumption. He probably got the company for a good deal and as their print revenue declines he might be able to help digital subscriptions grow.

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If he buys a few really good magazines to go with the Washington Post and offers free subscriptions if you buy a Kindle, I might be enticed to buy a Kindle.

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