The Washington Post Company (NYSE:WPO) is one of the largest newspapers in America, seventh in fact, ahead of journalism stalwarts like the Chicago Tribune and the Denver Post. The newspaper’s sheer size–it has about 473,000 total editions to its name–gives it the ability to survive in a post-paper world, where newspapers are delivered on tablets and other mobile devices.
It is with this functionality that is likely the reason why Amazon.com, Inc. (NASDAQ:AMZN) CEO Jeff Bezos bought the Washington Post for $250 million, according to a press release issued by the paper. As is noted by the release, which lists Bezos, Rima Calderon, Kristine Coratti and Drew Herdener as key contacts, “the purchaser is an entity that belongs to Mr. Bezos in his individual capacity and is not Amazon.com,” an absolutely essential distinction to make.
There’s some chatter swinging its way around the blogosphere right now about how The Washington Post Company (NYSE:WPO) could help Amazon.com, Inc. (NASDAQ:AMZN) in e-book publishing, but frankly, this move looks like a simple value play by Bezos himself.
The Amazon CEO’s net worth is estimated to be just over $25 billion, so this move is the equivalent of me or you buying a used Honda Civic. Okay, the Washington Post shouldn’t be compared to a used car, but you get our point.
Interestingly, the statement also reports that Slate, TheRoot.com and Foreign Policy will remain under the Post’s control, in addition to WaPo Labs and SocialCode. The company will also maintain control of the HQ building in Washington, DC.
It’s also important to point out that The Washington Post Company (NYSE:WPO) owns Kaplan and a few other ventures, and thus, will be tweaking its name. No name changes have been shared with the public…yet.
Bezos will, however, also take control of Express, The Gazette, Southern Maryland Newspapers, Fairfax County Times, El Tiempo Latino and Greater Washington Publishing, according to the release.
Amazon.com, Inc. (NASDAQ:AMZN), on the other hand, has been compared to one high-flying car company of late. Check out CNBC’s thoughts on the e-commerce giant below: