Before his 2016 candidacy, Donald Trump stopped by then-late-night host David Letterman’s show and spoke briefly about his Twitter following. It wasn’t a centerpiece of the interview, just something the soon-to-be president said in passing. Trump equated the tens of millions of followers he’d amassed, who see his tweets, as akin to owning The New York Times without losses.
That’s probably something Jeff Bezos wishes he didn’t have on his balance sheet regarding his 2013 purchase of The Washington Post. It’s been 10 years, and the man has lost $100 million. Subscriptions remain an issue, and the billionaire Amazon founder reportedly is determined to turn things around, recently sitting in on a Monday morning meeting at the publication (via Fox News):
10 years after The Washington Post was purchased by Amazon founder and billionaire Jeff Bezos, the outlet is "on a pace to lose about $100 million in 2023," according to a recent New York Times report.
Bezos took over the Post for $250 million in 2013, in one of the most significant media acquisitions of the last decade. The Post’s famous saying, "Democracy Dies in Darkness," became the official slogan of the paper in 2017, under Bezos’ watch.
But it seems that even Bezos could not turn around The Post’s flagging popularity with readers.
[…]
Two people "familiar with [Bezos’] interactions" with The Post said that the billionaire’s interest in the paper initially lasted for "several years" before he "receded somewhat," according to the report.
"That changed in January, after Ms. Buzbee spoke with Mr. Bezos and conveyed an urgent message: Morale was low at The Post. Much of it, she said, stemmed from missteps by the newspaper’s chief business executive, Mr. Ryan, according to two people familiar with her remarks."
[…]
But this year, Bezos "made a rare appearance in the newsroom," sitting in on a "morning news meeting."
Behind the scenes, Bezos has "weighed in" on a new project for The Post’s opinion section. "The initiative — which doesn’t yet have an official name — is exploring a forum for readers in cities across the United States to submit their own opinions and commentary," The Times wrote.
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It doesn’t matter that Bezos’ net worth is north of $150 billion; it’s the principle. It’s never good business to have $100 million losses, especially after 10 years of owning a company. Even the ‘Sharks’ on Shark Tank view losses in the thousands to tens of thousands to be brutal, and many make that much money in a few hours, let alone a year. It’s all about ensuring a business model works; for the Post—it’s bleeding cash. Maybe Bezos expected losses; he owns a print media company.
Steve Cohen bought the New York Mets in 2020 and was blunt and upfront about the financial losses he was willing to endure in his first years as the new owner. Take The Washington Post’s losses and triple it, roughly. I don’t think the man, who served as the inspiration for the character Bobby Axelrod on the show Billions, would want to see such losses in his portfolio in 2030. But it’s the Mets, I know.
The Washington Post could be a serious pickle for Bezos, who is also facing labor issues as the Teamsters seek to unionize Amazon drivers.
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