Multi-billionaire Jeff Bezos, the founder and owner of Amazon, will personally buy the America's leading news organization The Post and its affiliated newspaper the Washington Post for $250 million in cash.
The sale of Washington Post’s newspaper division to Jeff P. Bezos allowed the company to shift its focus to its education wing. The newspaper had been facing various financial difficulties. However, the educational department was a flourishing business before it came under government surveillance. The Kaplan chain of colleges adds its share to the annual revenue of the company. But the newspaper field was the worst hit and had been suffering since the past seven years.
The Chairman of the Washington Post Co., Don Graham spoke of how he had done his level best to rejuvenate and resuscitate the enterprise. But it was all to no avail. Now that the company is going to concentrate on its educational assets, it is yet to be seen how this sector fares. The Washington Post revenues declined by 3% to $4 billion in the previous year. The operating income however fell by a whopping 56%.
The newspaper industry was in crisis. And so Graham had a serious conversation with his niece and Washington Post Publisher Katherine Weymouth. They discussed whether there was someone out there who could handle the newspaper well. Finally they decided to go ahead with the process. Later on Jeff Bezos was held to be the person who could best manage the enterprise. Bezos meanwhile also showed interest in the deal.
With the sale, the Washington-based company has severed all ties with the media. The goal was not to just keep the Washington Post in circulation but to make it a success. Jeff Bezos will surely take it back to the top since he has charisma. Jeff said that he was buying the Post in his personal capacity and hoped to shepherd it through the evolution away from traditional newsprint. He will not be facing many restrictions in the way he experiments with the newspaper. Jeff is the #3 on the list of the world’s richest billionaires. He has what it takes to build the Washington Post from the ground up.
Source: The Washington Post