Amazon CEO Jeff Bezos buys The Washington Post for $250 million

By on August 5, 2013, 7:40 PM
amazon, buy, newspaper, jeff bezos, washington post, the washington post

Surprising news has rocked the media industry today, with Amazon CEO Jeff Bezos purchasing The Washington Post newspaper and other affiliated publications for $250 million. The Washington Post Company, which previously owned the paper, will continue to trade publicly after ownership is transferred to Bezos, although a new name will be chosen to reflect how it's now Post-less.

Amazon itself will have no role in the purchase, with Bezos using his personal investment firm, Explore Holdings LLC, to buy the publication and become its sole owner; the sale will likely complete within 60 days.

Previously the newspaper was owned by the Graham family, with Donald Graham sitting as chief executive at The Washington Post Company. Graham said that "every member of my family" started out being shocked at the idea of selling the publication, “but when the idea of a transaction with Jeff Bezos came up, it altered my feelings.”

Graham goes on to say that while The Post could have survived under his company, selling the paper to Bezos gives it a "much greater chance of success". Bezos himself called the paper an "important institution", and said that although he doesn't have a "worked-out plan" for The Post, he's positive about its future.

In the second quarter of 2013, The Washington Post reported an operating loss of $14.8 million, so it may take time for the $250 million investment to bring a net profit. Bezos will be taking the publication private as a result of the deal, meaning he will not have to report earnings to shareholders.

User Comments: 3

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tipstir tipstir, TS Ambassador, said:

Wow he's spending the money I use to buy up all the purchases I do with Amazon. Well at lease he's using the money on good investments. He could give all Amazon Prime members a discount credit to their accounts instead of the purchase of TWP.

MilwaukeeMike said:

Well at lease he's using the money on good investments.

Since he's taking it private we'll probably never know if it turns out to be a good investment. Most newspapers though are having a real hard time nowadays with the internet stealing their business. Maybe he has something planned for a news site and the Post was the one he's choosing to try it on.

BackwoodsNC said:

Ha, good investment? Did you even read the whole story? Second to last paragraph he said he doesn't even have a worked out plan! What a waste of 250 million!!!

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