Mr. Amazon Buys Washington Post
What could have induced Jeff Bezos, founder and chief executive of Amazon, to shell out $250 million to buy a newspaper? Announcing the change in ownership was The Washington Post itself, writing that the move is “sudden and stunning,” considering that “few people were aware that a sale was in the works for the paper.” The purchase, explains The Post, was made in a personal capacity. This means that the paper belongs to Bezos, not Amazon, the global colossus of sales on the web.
This marks the end of the Graham family era, their name having been at the top of the paper in Washington, D.C. for four generations. Donald Graham, CEO, explained shortly after signing the sale that he had made every attempt to update the newspaper with new technology and market alterations. However, declining sales and publicity have consistently dragged down shareholders' accounts. Still the newspaper would have been able to survive, “but we — Graham explained — wanted to do more than survive.” And so we turn the page to return to success — to the newspaper that, in the '70s, took the lead with the scoop of Bob Woodward and Carl Bernstein, the two reporters who uncovered the Watergate case. Bezos promises that there will not be cuts in staff.
Founded in 1877, The Post passed into the hands of the Graham family in 1946. It is one of the daily papers that has created the history of American journalism. Its latest scoop was on Datagate and included an interview with the mole Edward Snowden, in an exclusive shared only with British newspaper The Guardian. Will the giant of the digital market be able to make significant changes in the world of publishing? And afterward, will Amazon also be able to mobilize other web giants, such as Google or Facebook? Only time will tell.
But let's return to the initial question. What could have prompted Bezos to buy a newspaper? Was it a “mission impossible” to invest money — in the hopes of making a profit — in an industry that notoriously takes a loss? Or was it the legitimate desire to influence society and U.S. politics? Someone might observe pragmatically that for a millionaire like Bezos to own The Washington Post is a matter of status symbol more than anything — a well-polished gem to brag about in public, and if it becomes profitable, even better.
In a letter addressed to all the employees of The Washington Post, Bezos points out that the Internet has transformed and is transforming the business and that he intends to proceed in that direction. It remains to be seen whether or not he will be able to impose new editorial business models and truly bring some important innovations in the large “news market.” There is nothing left to do but wait and watch carefully, which will be difficult, however, if Mr. Amazon has giving up the paper in mind.
This marks the end of the Graham family era, their name having been at the top of the paper in Washington, D.C. for four generations. Donald Graham, CEO, explained shortly after signing the sale that he had made every attempt to update the newspaper with new technology and market alterations. However, declining sales and publicity have consistently dragged down shareholders' accounts. Still the newspaper would have been able to survive, “but we — Graham explained — wanted to do more than survive.” And so we turn the page to return to success — to the newspaper that, in the '70s, took the lead with the scoop of Bob Woodward and Carl Bernstein, the two reporters who uncovered the Watergate case. Bezos promises that there will not be cuts in staff.
Founded in 1877, The Post passed into the hands of the Graham family in 1946. It is one of the daily papers that has created the history of American journalism. Its latest scoop was on Datagate and included an interview with the mole Edward Snowden, in an exclusive shared only with British newspaper The Guardian. Will the giant of the digital market be able to make significant changes in the world of publishing? And afterward, will Amazon also be able to mobilize other web giants, such as Google or Facebook? Only time will tell.
But let's return to the initial question. What could have prompted Bezos to buy a newspaper? Was it a “mission impossible” to invest money — in the hopes of making a profit — in an industry that notoriously takes a loss? Or was it the legitimate desire to influence society and U.S. politics? Someone might observe pragmatically that for a millionaire like Bezos to own The Washington Post is a matter of status symbol more than anything — a well-polished gem to brag about in public, and if it becomes profitable, even better.
In a letter addressed to all the employees of The Washington Post, Bezos points out that the Internet has transformed and is transforming the business and that he intends to proceed in that direction. It remains to be seen whether or not he will be able to impose new editorial business models and truly bring some important innovations in the large “news market.” There is nothing left to do but wait and watch carefully, which will be difficult, however, if Mr. Amazon has giving up the paper in mind.