Jeff Bezos put billions of dollars into selling books online business, has forever changed the retail. Many anxious to see if Bezos can do the same after the media industry, Amazon.com founder announced that he was buying Washington Post "and other newspapers, $ 250 million.
Monday's news sold to 49-year-old pioneer of Internet commerce as an observer impact, many people think Graham family will never be sold. It also led to a reporter's ranks plagued by seemingly endless cuts of hope.
In his championship is a family member of the offering documents, including the Issuer Catherine Weymouth, who promised to continue to serve as publisher.
Since some reporters shed tears, expressed optimism.
"Jeff Bezos seems to me it is the choice of invention and innovation bring great news a repetition of the kind needed," said Carl Bernstein, cooperation, reporting the Watergate scandal in the early 1970s As a political watchdog consolidate newspaper's identity.
But the "Washington Post, like most newspapers, has lost readers and advertisers to the Internet while watching its value plummet paper cut its editorial staff repeatedly in recent years closed several bureaus.
Many people see Bezos wealth valued at $ 2.5 billion, from the "Forbes" magazine, is rich enough to maintain the newspaper in the coming years will likely face losses.
As an individual, Bezos is buy a newspaper. Amazon.com Inc. did not participate.
Bezos said the staff published a letter to the media that he wants to keep his "day job" Amazon CEO and Amazon is headquartered in Seattle, living in the "Washington" distribution.
But he made it clear there will be changes, if unforeseen future.
"The Internet is changing the news business, almost every element: Shorten the news cycle, weakening the long-term reliable source of income, so that a variety of new competition, some of which bear little or no news gathering costs, Bezos wrote." " There are no maps, and indicate the way forward will not be easy, we need to invent, which means we will need to experiment. "
"Washington Post" company chairman and CEO Donald Graham Bezos called a "unique good new owner." He said the decision is the result of years of the newspaper industry is facing challenges. The company will continue to have Kaplan University, and six television stations with test preparation business, to change its name, but did not say what it would be.
Bezos said in a statement that he understood the "Washington Post," the "key role" in Washington, said that its value will not change.
"Paper's responsibilities will keep its readers, rather than the private interests of its owners, Bezos said:" In his letter published employees.
He said he would follow the long-term issuer Katharine Graham, who died in 2001, in the pursuit of truth and important stories in the footsteps, "no matter what the cost."
"Although I hope that no one has ever threatened to pass wring one of my body parts, if they do, thanks to the example of Mrs. Graham, I'll be ready," he wrote.
Weymouth, newspaper circulation and CEO since 1933 has Newspapers Graham family members, will remain in her post. She has asked other senior management staff, and stay at.
"Mr Bezos, as well as anyone knows, equipped with revolutionary technology, when we learn how to make the most of the opportunity," she said, in a letter to readers. "In his title and his management skills, we will be able to accelerate the pace of innovation and quality."
News Industry watchers surprised, and even newspaper employees.
Metro newspaper columnist Robert McCartney, and a 31-year-old veteran said: "I think," We're still in shock. "Everyone's talking about it standing beside the editorial department ...... I do not think a lot of work."
Email to hit the U.S. Eastern time 16:17, the staff Inbox. It summoned them to the meeting after 13 minutes.
Graham spoke McCartney says he already knows how Bezos more than a decade, and described him as a decent, patient man, at staff meetings.
Graham told the staff, he convinced Bezos is committed to quality news and has no political agenda. Graham and Weymouth's remarks, from the staff has a long standing ovation.
"It's hard to imagine without Graham after wrote:" East Asia correspondent Chico Harlan in a tweet. "Don e-mail, his writers, know their names."
"Writer Gene Weingarten tweeted," If Don Graham said it was the right thing, and I believe him. "
Frederick KUNKLE, metro reporter and union leaders in the "Washington Post, said there are concerns among staff.
"Graham family has been revered in this town, so do it right," he said, he saw at least one person at the meeting wiped away tears. "We have a lot of problems."
Allen & Co., an investment banking firm, media and technology personnel in Sun Valley, Idaho, a high-level meeting held last month, was named as trading advisors. Bezos and Graham has been known to frequent meetings.
Amazon's chief observer, is eminently qualified to become the owner of the newspaper: his money, his innovation, he is willing to live with meager profits. This proves that he runs the Amazon since its inception. Last month, Amazon reported an unexpected loss, even in the April-June quarter, revenue grew 22% to $ 2,100 million.
"Some other buyers may see something missing after the money and said:" Joshua Benton, director of the laboratory at Harvard Nieman news. "There is little reason to suppose (Bezos) fall into this category."
Rick Edmonds at Poynter Institute of Journalism, media and business analysts, compared Bezos purchase billionaire John Henry's $ 71 billion acquisition of "Boston Globe," This is the week six declared.
, Remove the newspaper trade publication established publicly traded parent company had to answer shareholders demand good quarterly financial results.
"This means that the hands of wealthy individuals, who can take as long as he needs to spend much money, he hopes to remain strong after the paper," Edmonds said. "" This is a better situation than the other faster growing businesses, trying to prove that the same investment company. "
Alan Mutter, media consultant and former newspaper editor, said the deal marks the first time by the "digital natives already bought a newspaper," not someone entrenched in the print media.
"Here's a guy who is going to re-imagine the newspaper from top to bottom, we will look at what we got," Mutter said. "
Addition to the "Washington Post" and its website, Bezos is rapidly newspaper, bulletin newspaper, Southern Maryland Newspapers, Fairfax County Times, The Washington Times reported Latino and large publishing.
Will soon be renamed "Washington Post Company will retain slate magazine TheRoot.com and" Foreign Policy "magazine, and" Washington Post, "the headquarters building in downtown Washington.
Newspaper revenue in the past eight years, even more than many publishers charge readers for their print and digital access charges levied beginning, too dry.
Post newspaper company's annual revenue plunged 39 percent, from 3,957 in 2005 from 1 million to 582 million U.S. dollars last year. At the same time, the company's newspaper division turnaround year operating profit was $ 125 million, last year's operating loss of $ 54 million.
Print readers also fell sharply in the past decade. In 2002, the Washington Post to pay an average weekday circulation of nearly 768,000 copies, according to regulatory filings. Last year, "Washington Post," the daily paid circulation has fallen to an average of less than 481,000, a decrease of 37%.
Post the company's stock price, close to the end of 2004 a record high of $ 999.50 reflected in the difficult period. Shares closed Monday at $ 568.70, down from a peak of 43%.
Newspapers Outsell Inc. analyst Ken Doctor said Graham may be aware, the family endured turbulent lack of funds is still facing the industry.
"They see it in 2013 after it's clear print ads will continue to fall and cause stress, they did not expect," said the doctor. "
In contrast, maintaining an annual loss of about $ 10 million a few years, more tolerant Bezos and other billionaires, such as Warren Buffett, he has also been in the past few years to buy a newspaper, the doctor said.
Basis analyst Ed Atorino said, Boston Globe "and the" Washington Post "sales prove that some savvy business leaders of the newspaper or see hope.
"Obviously there are people in this country believe that these newspapers who are saved, but hope that advertising will eventually stabilize, they can start making money, Atorino said." "If an ad does not come back, then the game is over."
 



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