The chef and founder of Amazon.com, Jeff Bezos, has a binding agreement to takeover the Washington Post signed. The purchase price is 250 million dollars. The new owner is a company of Jeff Bezos - and not Amazon.com.
Amazon CEO Jeff Bezos
The business includes the Washington Post in addition to other titles that appear in the same publishing house. However, the digital publications such as Slate Magazine and TheRoot.com, and the Washington Post publishing companies are not included. In addition, the publisher receives a new name that has not yet been announced.
In an initial statement praised Donald E. Graham, chairman and CEO of the Washington Post, as Bezos' technology and business genius. " Because of its decency and its long-term approach he is a very good new owner of the Washington Post.
Bezos said in turn that he knew about the "crucial role" that play the newspaper in the capital and throughout the country. "The values of the post will not change," Bezos said. "Our commitment to the readers is still the heart of the post, and in relation to the future, I'm very optimistic."
In a letter and the staff of the Washington Post Bezos announced that the current management team retain the responsibility for the daily operations. Bezos himself would focus on his job at Amazon. "The newspaper will remain committed to their readers and not the private interests of its owners," Bezos wrote. But the employee would have to adjust to changes. The impact of the Internet on the news business did - regardless of ownership - radical changes necessary.
In an interview with the Washington Post, Graham said the newspaper would have been profitable under the direction of the owner's family in the foreseeable future. "We wanted to do more than just survive. I'm not saying that success is guaranteed now, our chances of success are but become better. "
Benchmark analyst Dan Kurnos makes Bezos' success depends on whether he can use his experience in selling digital content to boost the shrinking newspaper business again. "Bezos has roots in traditional publishing business and he also has an e-book empire built," said Kurnos. Bezos know with run lengths and reading habits, and he was able to sell e-books almost the same price as printed books.
Bezos also own one of the largest ad networks and extensive data on the buying behavior of Amazon customers. "If he can achieve this with newspapers, what he has achieved with e-books, he has a huge money-making machine," Kurnos said.