Washington Post for $250 Million
On Monday, The Washington Post announced that the company would be taken over by Jeff Bezos. Bezos is known for his business and technological acumen in managing something as big as the Post and its many assets. He is a perfect fit as the new owner according to The Washington Post Company CEO Donald Graham. The company is going to be sold for $250 million, inclusive of the revered The Washington Post.
Making a new mark in DC
The Washington Post Company has been under the management of the Graham family for decades. CEO Donald Graham and the rest of the stockholders sold the newspaper business with the thought that a new owner might bring in something new. After years of successfully running the newspaper business the decision to sell to a better owner finally came through. Bezos has a track record as the founder of Amazon.com and Graham believes that he will find success and contentment with his new acquisition.
After the announcement was made on Monday, there was a 5.5% increase in shares. The trade name will be changed as a part of the deal. However, there has been no clear announcement yet on what the new name is going to be.
In very good hands
CEO Donald Graham assured that the company is in good hands. Jeff Bezos, founder of Amazon.com (AMZN, Fortune 500), has shown his abilities when it comes to managing businesses. He also acknowledges that Bezos is a business genius who always sets long term goals when it comes to his entrepreneurial endeavors. Acquiring The Washington Post without putting it under Amazon certainly means that Bezos is going to personally oversee the operation.
Keeping the status quo
Bezos said in an interview that he understood “the critical role the Post plays in The Washington, DC and the nation.” He also assured that he would aim to rise above expectations set by the Post in terms of providing quality service.
As far as investments are concerned, Bezos has put his money on the things that he was personally interested in. Bezos invested in Business Insider, a financial news site which is also connected with Blue Origin, a company dedicated to commercial space flight.
What remains?
The Washington Post will keep Katharine Weymouth as CEO and publisher. Bezos also assured that Martin Baron will remain as the executive director of the Post. A memo was already sent out to the employees indicating that Bezos would not direct and lead the newspaper company’s operations on a daily basis.
The Washington Post acquisition includes other assets such as the Gazette Newspapers, Express Newspaper, Southern Maryland Newspapers, El Tiempo Latino, Fairfax County Times and Greater Washington Publishing.
In the meantime, the Post will retain ownership over some media titles like TheRoot.com, Slate, Foreign Policy magazine and Kaplan. Real estate assets such as the headquarters of the Post located in downtown Washington, as well as the Post-Newsweek network stations will remain the property of the Post. Cable One cable operator is also still going to be owned by the Post.
- See more at: http://www.daynews.com/business/2013/08/jeff-bezos-of-amazon-acquires-washington-post-for-250-million-22478#sthash.MaybMdf2.dpuf
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