You’ve probably heard by now that Jeff Bezos, the founder and chief executive of internet behemoth Amazon.com, has acquired the Washington Post in a deal worth a stonking $250 million.  Just to be clear, Bezos purchased the company with his own cold, hard cash, so the Post isn’t going to become a part of Amazon. Even so, things could change, and in the future the two companies may be integrated in one way or another.

So what pushed Bezos to acquire what is one of the biggest media companies in the US? According to the man himself, journalism plays a critical role in a free society so this acquisition is important.  But according to some, the Amazon CEO is looking at the acquisition in terms of the future.

Why Bezos bought the Post:

There’s a few reasons why the mastermind behind Amazon is interested in owning what is one of the country’s most widely read newspapers:

Ecommerce

As mentioned earlier, the Post and Amazon may be integrated in a way that would allow consumers to read the news and if they find something they want to purchase, purchase that item direct from the shopping site, since the retail part will in future be powered by Amazon. Readers won’t have to leave the Post to purchase anything, so they can go back to reading the news the moment after their impulse buys.

Advertising

Newspapers, digital or print, attract a lot of advertisers and tie in well with online shopping. Brands could advertise in the Post, and if anyone clicks on their ad this would land them either directly on the brand page, or take them direct to an Amazon ad.  Either way, Bezos would greatly benefit from this.

Reputation

Bezos is already an investor in the Business Insider magazine, and so this move into media isn’t entirely new to him.  The acquisition of a media giant can prove very beneficial to Bezos as it will almost certainly attract more investors and advertisers.  Unfortunately, if Amazon and the Post become integrated, people may no longer trust a publication that is so focused on commerce.

Similarities with Amazon and the Post?

Some have pointed out that certain similarities in Amazon and the Post may have caused Bezos to acquire the company.  Both Amazon and the Post offer subscriptions, content production, and they both offer physical deliveries, though not of the same things.  This means that running the Post won’t be that hard for Bezos, since the companies in many ways have similar operations.  Plus, the added bonus that the two can be integrated makes it a sound acquisition.

According to Bezos, the value of the Post will not change, but it is expected that changes in the company will happen over the years not because of the new leadership, but because of the need for change.

As Bezos stated in his letter published in the Post:

“There will, of course, be change at The Post over the coming years. That’s essential and would have happened with or without new ownership. The Internet is transforming almost every element of the news business: shortening news cycles, eroding long-reliable revenue sources, and enabling new kinds of competition, some of which bear little or no news-gathering costs.

“There is no map, and charting a path ahead will not be easy. We will need to invent, which means we will need to experiment. Our touchstone will be readers, understanding what they care about – government, local leaders, restaurant openings, scout troops, businesses, charities, governors, sports – and working backwards from there. I’m excited and optimistic about the opportunity for invention,”

Aside from the Post, the acquisition also entitles Bezos to the ownership “of a host of smaller local papers, the Washington Post website, and a printing outfit by the name of Comprint that the Post itself notes ‘publishes several military publications.’”