Why Amazon CEO Bezos Is Buying The Washington Post

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Aug. 5 (Bloomberg) -- Amazon.com CEO Jeff Bezos agreed to buy the Washington Post for $250 million from Washington Post Co., vaulting the e-commerce magnate into the struggling newspaper industry. Cristina Alesci and Peter Cook report on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

She will report directly to the ceo.

Thank you.

Jeff bezos is going to purchase "the washington post" newspaper assets for one quarter of $1 billion, $250 million.

For more on the details of what this means, we have cristina alesci and chief washington correspondent peter cook.

Cristina alesci, what is jeff bezos purchasing exactly?

A story and reputable name in journalism, and obviously, the latest billionaire to pick up a newspaper.

Perhaps a trophy asset.

We have a quote from jeff bezos saying "i understand the critical role the post plays and that will not change.

I am very optimistic about the future." the newspaper industry has been struggling with red -- and revenue and declining readership and circulation, so these billionaires providing backing has been a theme in this is just the latest.

John henry bought "the boston globe" and warren has spent over $380 million on newspapers over the years.

What makes jeff bezos standout is he is an internet billionaire, so he made his name in nontraditional, pushing media forward, and here he is going into a very traditional newspaper.

Peter cook,, in on -- come in on "the washington post," and give us some details -- a subscription and what is the reach of the paper?

Substitutions have been down this year alone 7%. this is a story institution.

I am a native washingtonian, and the fact that the graham family is selling this paper it is a huge deal in the city of washington.

I know folks at work at the post and there have been efforts to revive the company, improve the business outlook.

I put the building -- they put the building up for sale, for example.

A lot of people did not see this coming.

The fact that jeff bezos has bought this for $250 million, and from the early reports says there are no firings, 2000 employees -- no major changes in operations or management.

We will see if that changes over time, but this is the biggest institution other than the redskins in washington.

What role can he play for his $250 million -- does jeff bezos get more influence in washington because it is "the washington post" as opposed to another newspaper?

There will be talk about how jeff bezos the businessman will not influence the news product, but he becomes a bigger player he cause of this purchase whether he wants to be or not.

There will be some questions posed.

This is a paper, like a lot of papers around the country, looking for help -- new funding, ways to reach the gap from the old world of newspapers to the new world of newspapers and digital, and no one knows the new world better than jeff bezos.

It will be looking to him for ideas to make this profitable.

Thank you, peter cook and cristina alesci on "the washington post" selling newspaper assets to jeff asus -- jeff bezos for $250 million.

Major league he saw -- baseball has suspended alex rodriguez and 12 other players for using performance-enhancing drugs.

A-rod's suspension will last 250 games.

We are joined by a former executive with the memphis grizzlies and san francisco 49ers, a player's perspective with carl's -- carl banks.

Ira, what does this cover, and can he appeal question mark -- appeal?

He can appeal.

They are accusing him of using performance-enhancing drugs, although they do not have a positive test, and they are accusing him of obstructing the investigation.

This is more than the 50 game suspension.

It is not clear how they got to 211. andy, will be appeal work?

This is a pe referendum.

If you try to write this in a script, they go to boston next.

You can imagine what the fan experience will be at those ballparks.

This is important stuff in baseball.

The fact that alex rodriguez is playing, billy shakespeare would have gotten something out of this one.

Carl banks, you heard about the suspension.

What is your reaction?

From a professional sports standpoint and amateur sports, they need to be rid of the drugs.

How they got to the suspension, it seems like they are using a just cause clause among which will be challenged, -- clause, which will be challenged.

It has been collectively bargained, so they can use this clause to clean up the sport and say you are guilty by association.

I applaud major league baseball and the union for trying to clean up the sport and others should follow suit.

Ira boudway, what is the situation in other sports with performance-enhancing drugs?

Baseball is at the forefront.

None of them are up there with olympic sports and cycling.

We know what happened to lance armstrong.

Right, and in terms of the regime for testing.

In any sport, you will almost always be behind the chemist samba drugs, as -- the chemists and the drugs, as fay vincent said this morning.

It is a game of cat and mouse.

Andy dolich, the amount of money a-rod can or cannot make?

He signed contracts worth half of $1 billion.

You could buy third world countries for that.

He is putting himself in the game -- and the game through this because of this.

To the game of cat and mouse, it is like a laser pointing -- pointer to a kitten, no one has gotten close.

All players want is a level playing field, and if you do not have that, you are screwing with the essential nature of the business.

Ira boudway, a level playing field -- you talk about the chemist, will it not just result in coming up with something that cannot get the tactic?

-- detected?

There is broad this taste for alex rodriguez, and you want to think about before you say one strike and you are out, what if this is a young player who made a mistake and he did not know?

I think baseball is using the fact that alex rodriguez is not a popular player right now.

We would all like to see the end of him, but what if it is someone else?

Ira boudway, thank you.

We have more with andy dolich know?

I think from san francisco and we will be speaking to carl banks about a new fashion trend that has caught on in the bloomberg newsroom.

We will give you details.

That is next.


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