SAN FRANCISCO — Amazon CEO Jeff Bezos is revered as one of the brightest minds in corporate America, but even he is still puzzling over how to reverse the financial slide threatening The Washington Post and other major U.S. newspapers.
Nevertheless, Bezos is determined to face the challenge, raising hope that his $250 million purchase of The Post, announced Monday, will provide the newspaper industry a template for making the leap from the printed page to digital devices.
“The marriage between the newspaper industry and technology has never been consummated, but it could happen at The Washington Post now,” said media analyst Ken Doctor of Outsell Inc.
Although Bezos bought The Post with his own money, most experts believe he is likely to tether the newspaper to Inc.’s products. He might also infuse the newspaper with some of the customer-first concepts that helped turn the Seattle company from an online bookstore into a multidimensional business that sells a multitude of merchandise and runs data centers that power other websites around the world.
Bezos, 49, made it clear in a letter sent to Post employees that he has no magic formula for turning the publication around. The newspaper is the anchor of a division that lost $54 million at The Washington Post Co. last year while generating revenue of $582 million — 39 percent less than it did in 2005.
Bezos’ purchase of The Post makes him the latest billionaire to funnel some of his money into the ailing newspaper industry. Berkshire Hathaway’s Warren Buffett has assembled a portfolio of more than 30 small and medium-sized newspapers, while Boston Red Sox owner John Henry recently agreed to pay $70 million for his hometown newspaper, The Boston Globe.
Amazon’s nearly two-decade history under Bezos’ leadership suggests The Post is likely to try things that other newspapers steeped in tradition have never dared to attempt.
