We saw CEOs purchasing other companies in the name of the companies that they represent. If you ask me, this is one of the rare cases we can see in the business world. I’ve never witnessed a CEO buying a bigger company by himself, outside the company he already works for. Amazon’s CEO, Jeff Bezos, is on the verge of buying Washington Post publishing business and its branded newspaper. The price that Bezos will pay is $250 million for a company that was under family ownership for many years. It’s highly important to note that this entity will belong to Bezos himself and not Amazon.com.
This isn’t the first time we saw Bezos’ special interest in the news market. He gave $5 million as an investment in publication by Business Insider seen earlier this year. Only last week, Amazon published a Q&A form with the U.S President Obama on the Kindle’s platform. In a post by the newspaper, we saw the CEO of this company, Donald E. Graham, praising Jeff Bezos and saying that he is a well-known businessman and tech genius and added that his amazing personality will make him a great leader and owner of Washington Post.
Bezos acknowledged this and added that he understands what it takes to own a newspaper that plays a big role in the country and nation’s capital. He said that Washington Post won’t note any changes at this time and their obligation is to continue to be the core of the newspaper. He seemed really optimistic about his and Washington Post’s future. There are no details about his further investments and main clues of his strategy with the newspaper.
He even addressed its Washington Post employees in a letter saying that he expects many of them to greet this purchase with appreciation and added that the leadership staff of the Washington Post Co. will remain to lead in their domains while he will stay focused on his daily job at Amazon. He told them to expect some simple changes to come in the future but didn’t give any specific details about this.
He mentioned something about the Internet transformation process which, as we all know, is included in every inch of the news business. According to this, we could expect some changes to take place in this area. He said that all they need to do next is to invent something because there is no map for charting the map ahead.
Graham said that the newspaper would’ve been profitable in the upcoming period under his family name that has built this company through decades, but he wanted to do something more than just survive on the market. He said that this doesn’t guarantee success but there is a greater chance of making the newspaper exceptional.
Analyst at Benchmark Co. Dan Kurnos said that Bezos’ has a great record of traditional publishing. He explained Bezos’ great work with building a big empire with its e-books and added that this person understands the reader patterns. If you take a look at Amazon’s gigantic purchasing data, you will see that they have some loyal consumers, which will bring more to this newspaper. At the end, Kurnos said that if Bezos does the same thing what he’s done with the great offering of e-books, there is a great success ahead of Washington Post.