The newspaper which brought out the news of the unbelievable "Watergate Scandal" The Washington Post, is purchased by the most popular e-commerce website Amazon.com's founder and CEO Jeff Bezos. In an hurry, Jeff Bezos declared it in his statement. The deal is done with Jeff Bezos to pay $250 million.
Bezos is buying it with his personal wealth, it means the newspaper is his personal acquisition not of his company Amazon.com. It will take 60 days for the completion of the deal.
The Washington Post newspaper was started in 1877 with 10000 prints, but grew very quickly with its great journalism and research work. Once it even forced American President Richard Nixon to stand down, by publishing the news of the famous Watergate Scandal in 1972. After the article by two reporters Carl Bernstein and Bob Woodward, President Richard Nixon faced impeachment and he resigned in 1974. This is the the first time in American history.
For the last 80 years the newspaper was the property of the Graham family. In this deal Bezos is buying The Washington Post and its related ventures via a new holding company Explore Holdings.
The Washington Post newspaper is considered as a special newspaper who has won 47 Pulitzer prizes, 368 White House News Photographers Association awards, 18 Neiman Fellowships etc. In the mid-1970s, conservatives called the newspaper “Pravda on the Potomac” because of its perceived left-wing bias in both reporting and editorials.
Here are the main reasons why The Washington Post newspaper has sold for such a low price:
1. The profits are reduced due to the reduction in advertising revenue on the internet.
2. The newspaper has not succeeded in reviving its popularity in the print sector.
3. The owner did not use the print staff in the digital operations of the newspaper.
4. Between 2001 to 2010 the newspaper faced the reduction of 1,200,000 in print circulation.
5. For the last three years the paid circulation is reduced by 14% due to reduced circulation numbers.
So due to these reasons the Graham Family decided to sell the one of the oldest and revolutionary newspapers in America for just $250 million, which according to the experts is less than its actual brand value.