The sale of the Washington Post to Jeff Bezos Monday left us guessing about the fate of the fabled newspaper, but Wall Street’s
reaction was swift. In after hours trading Monday, the day news of the impending deal broke, the Washington Post Company’s stock gained 29 points, from $568 at the close of the bell to $597, according to MarketWatch. First thing Tuesday, investors snapped up shares and sent the share price over $600.
The sale of the newspaper division was a smart business decision, plain and simple.
No doubt the Washington Post, and journalism in general, thrived under the Graham family’s stewardship for the
past 80 years. How many journalists got into the game because of Woodward and Bernstein,
brought to you by the Washington Post? The Post helped establish investigative journalism. We all wanted to defrock a president—or
a mayor, at least. Kay Graham, in her quiet and reserved way, broke barriers for women in business and publishing.
On its worst days, the Post still published great journalism.
But the storied newspaper could not withstand the disruptions brought on by the digital
era. Like many other daily print publications, its business model quit working. Starting
a decade ago, it began losing readers and revenues. Over the past six years it saw
a 44 percent decline in operating revenue, according to the Post article announcing the sale. The Post Company’s newspaper division posted an operating
loss of nearly $50 million over the first six months of 2013. Online revenue rose
15 percent, but that barely offset the losses.
When the Post Company roped off its daily newspapers into a separate News division
not long ago, it became one of five distinct divisions that included Education, Broadcasting,
Cable, and “Other Businesses, Ventures, and Investments.” Reporters wondered at the
time if the reorganization would set the stage for the Grahams to sell the newspaper
and keep its profitable divisions.
That’s precisely what the Bezos deal described.
The Post Company kept its Kaplan education division, which could soon return to being
profitable. The money-making broadcasting and cable divisions are not going to Bezos.
The Post Company kept its valuable real estate holdings in downtown Washington, DC,
and in the Robinson Terminal, along the Alexandria waterfront.
In jettisoning the news division, the Grahams cut their losses. The company will have
to change its name, but without the news division’s drag, it’s likely to see growth
in its stock value, judging from Wall Street’s immediate reaction to the Bezos news. Keep in mind Post Company stock was selling for $26 a share when Kay Graham took it public in 1971.
Selling the iconic newspaper might wind up being bad for journalism—or Bezos might
figure out a way to make money and good journalism at the same time. Either way, the
deal is very good for the Grahams, who control the company and its stock, worth many
billions of dollars.
The Sale of the “Washington Post”: A Smart Decision for the Graham Family
The sale of the
Washington Post to
Jeff Bezos Monday left us guessing about the fate of the fabled newspaper, but Wall Street’s
reaction was swift. In after hours trading Monday, the day news of the impending deal broke, the Washington Post Company’s stock gained 29 points, from $568 at the close of the bell to $597, according to MarketWatch. First thing Tuesday, investors snapped up shares and sent the share price over $600.
The sale of the newspaper division was a smart business decision, plain and simple.
No doubt the
Washington Post, and journalism in general, thrived under the Graham family’s stewardship for the
past 80 years. How many journalists got into the game because of Woodward and Bernstein,
brought to you by the
Washington Post? The
Post helped establish investigative journalism. We all wanted to defrock a president—or
a mayor, at least.
Kay Graham, in her quiet and reserved way, broke barriers for women in business and publishing.
On its worst days, the
Post still published great journalism.
But the storied newspaper could not withstand the disruptions brought on by the digital
era. Like many other daily print publications, its business model quit working. Starting
a decade ago, it began losing readers and revenues. Over the past six years it saw
a 44 percent decline in operating revenue, according to the
Post article announcing the sale. The Post Company’s newspaper division posted an operating
loss of nearly $50 million over the first six months of 2013. Online revenue rose
15 percent, but that barely offset the losses.
When the Post Company roped off its daily newspapers into a separate News division
not long ago, it became one of five distinct divisions that included Education, Broadcasting,
Cable, and “Other Businesses, Ventures, and Investments.” Reporters wondered at the
time if the reorganization would set the stage for the Grahams to sell the newspaper
and keep its profitable divisions.
That’s precisely what the Bezos deal described.
The Post Company kept its Kaplan education division, which could soon return to being
profitable. The money-making broadcasting and cable divisions are not going to Bezos.
The Post Company kept its valuable real estate holdings in downtown Washington, DC,
and in the Robinson Terminal, along the Alexandria waterfront.
In jettisoning the news division, the Grahams cut their losses. The company will have
to change its name, but without the news division’s drag, it’s likely to see growth
in its stock value, judging from Wall Street’s immediate reaction to the Bezos news. Keep in mind Post Company stock was selling for $26 a share when Kay Graham took it public in 1971.
Selling the iconic newspaper might wind up being bad for journalism—or Bezos might
figure out a way to make money and good journalism at the same time. Either way, the
deal is very good for the Grahams, who control the company and its stock, worth many
billions of dollars.
See also:
“Washington Post” Reporters React to Sale
More Bad News About the “Washington Post’s” Profits
Where the “Washington Post” Headquarters Could Move
Editors' Picks
The 100 Very Best Restaurants in Washington
Bad News for the NFL: John Riggins’ Wife Is a Lawyer
The High-Paid DC Millennials Who Are Using Side Hustles to “Ball Out”
Meet Britt McHenry, the Fox News Star for Millennials
Most Popular in News
“The Handmaid’s Tale” Is Filming on the National Mall and the Photos are Kinda Intense
A Shocking Love Triangle Has Broken Up DC’s Favorite Bald Eagle Power Couple
The Definitive Oral History of the Bobbitt Case, 25 Years Later
Bad News for the NFL: John Riggins’ Wife Is a Lawyer
The Sex-Abuse Scandal That Devastated a Suburban Megachurch
February 2019: 100 Very Best Restaurants
Related
A Look Inside One of the Country’s Biggest Vinyl Record Plants
New Sports Site The Athletic Is Coming After the Post
Does the Washington Post’s Style Section Have a Future?
30 Years Ago, Getting Your Hands on a Copy of the Washington Post Hot off the Press Was Like an Episode of The Sopranos
More from News
“The Handmaid’s Tale” Is Filming on the National Mall and the Photos are Kinda Intense
The Amazon Resistance Won in New York. What Does it Mean for Virginia?
Jelani Cobb on the Super Bowl, Ralph Northam, and the State of Black History
We Asked These Washingtonians Who They Were Buying Flowers For on Valentine’s Day
Who Would Go See Howard Schultz Speak on Valentine’s Day?
Washingtonian Today: Amazon Dumps NYC on Valentine’s Day
The People Who Still Have to Work When Washington Has a Snow Day
A Shocking Love Triangle Has Broken Up DC’s Favorite Bald Eagle Power Couple