Last night we went to bed with the unexpected bombshell news from Twitter that Jeff Bezos the CEO and founder of Amazon, one of the giants of the Internet, and most World ecommerce company, acquired in a personal capacity, The Washington Post, one of the internationally recognized newspapers for $ 250 million (190 million euros) in cash.
Rescuing a tweet great:
TRANSLATED: Perhaps they said him: – “Go buy the newspaper” and he mistook xD
But though it may sound that this man has done something strange, if we do some memory and scratch a little, we can see that not only investment is his personal level, as has been this case, as was to invest in: Domo, Everfi, Behance, Uber, Mashape, Airbnb, Qliance Medical Management, ZocDoc, ChaCha, Pelago, Linden Lab, as well as on Twitter o 37Signals and is the first in a medium of communication, as when invested this year in the business blog: Business Insider.
It has made me think the comparison made in CincoDías, the purchase price of this newspaper more than 80 years, for $ 250 million and $ 1,000 million (x4 times), from Yahoo to acquire Tumblr, a blogging platform.
But investment in traditional media, has raised all kinds of conjecture and speculation, from the why, the wherefore, and many more, and I do not wonder.
In declared following the sale, the Graham family, which owned the newspaper: “We wanted to do more than survive. Not that this is going to ensure success but it gives us a much better chance of getting it.” And is that even though the letter Bezos says to employees, he will not influence the online newspaper, if something is expected of this purchase is that Bezos from the shadows, and you will not acquire any role in the daily management, be able to make a profitable business from one that was now closer to bankruptcy than anything else, having lost more than the 50 million in the last six months.
And this is where I think the most interesting part comes in as an outsider to the industry, innovative profile and has demonstrated its expertise in Internet and other fields, and the use of new technologies, will or not, can to turn around the situation, making this newspaper something different, adapted to changing times, but Bezos has said: “I do not want to imply that I have a definite plan. This is unknown territory and require a period of experimentation“. But Katherine Weymouth, the niece of the Graham and current editor of the Post, acknowledged that “Jeff knows better than anyone the opportunities it brings revolutionary technology when we know how to make the most“.
I extract a fragment Bezos letter which I think is very important: “..Internet is transforming almost every element of the news business: shortening news cycles, eroding revenue sources were reliable long, and allowing new types of competition, some of whom have little or no newsgathering costs. There is no map and chart a road ahead will not be easy. We’ll have to invent, which means we’ll have to experiment. The touchstone will readers understand what interests them.. ”
As MG Spiegel said in its analysis of this in Techcrunch, all to Jeff Bezos is a game in its strategy of long-term benefits, which gave such good results on Amazon. So we will see how it develops, but some point to the ability to influence that can give you control one of the country’s most influential newspapers to lobbying force and other synergies with its other business: Amazon. Whatever it is, it sure is not going to remain indifferent.
How about shopping? What do you consider the highlight of it all? You think I get making profitable newspaper without change? Or he does not know where he gets?