It’s Tuesday. Amazon.com announced on Monday it is buying the Washington Post, for $250 million. This was just a few days after Red Sox owner John Henry announced he was buying the Boston Globe for $70 million.
Those numbers are really small. The New York Times bought the Boston Globe for $1 billion. Ouch. Old-school media types are pouring extra-strong gin and tonics this week. They are making their therapy appointments. They are freaking out.
Why are they freaking out? They didn’t know the Internet had turned them into losers? I have a message for you old-media folks: Your industry has been disintegrating for decades and you have done nothing about it. All you do is sit in your summer pads at the Hamptons and the Vineyard and whine about Google search algorithms. You are like a bunch of neurotic music executives at an Apple convention in 2002.
Meanwhile, the bloggers are going hog-wild analyzing this. Business Insider Editor In Chief, Henry Blodget, who has an “in” with Mr. Bezos, explains what he’s like as an investor and speculates why he did it.
Others have their own analysis. Appropriately, the Washington Post is analyzing itself. WashPost reporter Ezra Klein makes the astute point that Jeff Bezos is using about 1% of his net worth to buy the old-school media empire.
That’s it. I’ll tell you what this all means: It means that Jeff Bezos has a ton of cash. He can do whatever he wants.
John Henry has a ton of cash too.
Newspapers do not.