Thread: Amazon CEO Bezos to Buy Washington Post Newspaper $250 MILLION

4:47 pm Aug 5, 2013

Amazon CEO Bezos to Buy Washington Post Newspaper

By Brian R. Fitzgerald

Jeff Bezos at the annual Sun Valley conference July 12. Reuters

Amazon.com AMZN -1.06% Chief Executive Jeff Bezos is buying the Washington Post Co.'s WPO +1.56% flagship newspaper and some related publishing assets for $250 million.

The press release makes the explicit point up high that the buyer is an entity belonging to Bezos, not Amazon. The deal doesn’t include several properties, such as Slate.com, Foreign Policy magazine, and Kaplan, among others.

The news comes days after the New York Times agreed to sell the Boston Globe for $70 million to John Henry, the principal owner of the Boston Red Sox.

Bezos’s interest in newspapers stretches back a few years. When Amazon showed off the larger Kindle DX e-reader in 2009, it was at the headquarters of the New York Times. Times publisher Arthur Sulzberger Jr. was in attendance, offering the device to Times or the Globe subscribers in areas where home delivery wasn’t available.

Here is the Washington Post on today’s news of the sale, and the press release is below.

* * *

WASHINGTON–(BUSINESS WIRE)–August 05, 2013– The Washington Post Company (NYSE: WPO) announced today that it has signed a contract to sell its newspaper publishing businesses, including The Washington Post newspaper, to Jeffrey P. Bezos.

The purchaser is an entity that belongs to Mr. Bezos in his individual capacity and is not Amazon.com, Inc.

“Everyone at the Post Company and everyone in our family has always been proud of The Washington Post — of the newspaper we publish and of the people who write and produce it,” said Donald E. Graham, Chairman and CEO of The Washington Post Company. “I, along with Katharine Weymouth and our board of directors, decided to sell only after years of familiar newspaper-industry challenges made us wonder if there might be another owner who would be better for the Post (after a transaction that would be in the best interest of our shareholders). Jeff Bezos’ proven technology and business genius, his long-term approach and his personal decency make him a uniquely good new owner for the Post.”

“I understand the critical role the Post plays in Washington, DC and our nation, and the Post’s values will not change,” said Mr. Bezos. “Our duty to readers will continue to be the heart of the Post, and I am very optimistic about the future.”

Mr. Bezos has asked Katharine Weymouth, CEO and Publisher of The Washington Post; Stephen P. Hills, President and General Manager; Martin Baron, Executive Editor; and Fred Hiatt, Editor of the Editorial Page to continue in those roles.

“With Mr. Bezos as our owner, this is the beginning of an exciting new era,” said Ms. Weymouth. “I am honored to continue as CEO and Publisher. I have asked the entire senior management team at all of the businesses being sold to continue in their roles as well.”

The transaction covers The Washington Post and other publishing businesses, including the Express newspaper, The Gazette Newspapers, Southern Maryland Newspapers, Fairfax County Times, El Tiempo Latino and Greater Washington Publishing.

Slate magazine, TheRoot.com and Foreign Policy are not part of the transaction and will remain with The Washington Post Company, as will the WaPo Labs and SocialCode businesses, the Company’s interest in Classified Ventures and certain real estate assets, including the headquarters building in downtown Washington, DC. The Washington Post Company, which also owns Kaplan, Post–Newsweek Stations and Cable ONE, will be changing its name in connection with the transaction; no new name has yet been announced.

The purchase price is $250 million, subject to normal working capital adjustments, payable at closing later this year.

Allen & Co. assisted the Post Company in the sale process.
http://blogs.wsj.com/digits/2013/08/05/amazon-ceo-bezos-to-buy-washington-post-newspaper/

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