Why Did Bezos Invest in a Newspaper?

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Aug. 6 (Bloomberg) -- Bloomberg's Brad Stone and Jon Erlichman discuss why Amazon CEO Jeff Bezos bought The Washington Post. They speak with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

I am assuming you have to add some new stuff to this book.

First of all, why?

Why "the washington post"? it was astonishing, even for me.

He believes there is a reset a moment happening throughout business.

The internet changes for companies and customers.

He has been betting on content of amazon for years.

He has bet an editorial department within amazon offering new opportunities for authors via the candle -- kindle, the right to viewers.

I think he believes the same opportunities for experimentation exists in journalism.

Is this going to bolster amazon?

Is this good for amazon?

It is completely separate.

He has looked at what warren buffett has said and how buffett has invested in newspapers.

I think he sees a financial opportunity to turn around a kind of semi-civi prized asset.

It has influence in washington, dc as amazon gets bigger and as regulatory authority start to worry.

I wonder how this came about.

You have some news about how the owner of "the washington post" started this rss.

He is the one that reached out to jeff bezos.

What happened?

This does not happen without don graham looking for some options for the future of this business.

It has been clear he expects a lot more change for this business which has already gone through a lot of change and may be big changes that are tough to do as a public company.

Over the last six months, don graham, very quietly , had gone to a series of potential individuals about doing something like this.

Even with jeff bezos, our understanding is when he was first approached he had some other stuff on his plate and when he got his idea -- head around the idea there is no haggling over the price which ended being $250 million.

It is interesting.

We are hearing the mood is very somber.

Everyone was really surprised by this.

Should they be worried?

What is the grand plan?

Bezos says he does not have a plan.

You have to be optimistic.

As we have been marinating in the pessimism of the media business for many years, you know that numbers are bad.

Advertising is down.

Bezos will bring his long-term orientation.

He is willing to tolerate losses for quite a long time.

He said this in an interview with a german newspaper recently, one thing i am sure of, in 20 years print newspapers will have ceased to exist.

Is the print edition going to exist?

Does anybody really think there will be printed newspapers in 20 years question?

I think that is obvious.

The business into claim -- is in decline.

Profits have been falling for seven years.

Bezos is the turkic person to not just managed the decline of the traditional business but to allow it to reinvest and to build new properties on the internet.

" the washington post" is obvious is that thing they care deeply about.

What do you think he saw in jeff bezos in particular given there were other potential bidders out there?

It always helps when you're willing to pay the price that they think is fair.

At the same time, there is this general view that jeff bezos supports, want to see quality journalism.

He is somebody who obviously cares passionately about the written word and where it goes in the digital age.

We have seen that.

The business.

Those are probably the one and two key factors.

This is good for the financial health of the washington post.

What about the public interest?

I wonder what this does for the u.s. government hash mark there have been several questions , not the least of which is sales tax.

Amazon is damn and awning -- dominating the book business.

It is increasingly dominating the sale of electronics.

If they get to a walmart scale size it will have plenty of issues in washington.

I think this gives them a seat at the table.

I do not think it is why he gave the deal but he is thinking more about amazon's relationship to government.

You have a book coming out in october.

What are you doing about this?

Are you adding stuff?

There have been frantic last- minute revisions.

Luckily, it is a book about amazon.

Jeff bezos is the main character.

This text has been automatically generated. It may not be 100% accurate.


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