Yesterday I read that The Boston Globe, which had been owned by The New York Times since 1993, had been sold to John Henry, who currently owns the Boston Red Sox and a soccer team. And today I read that Jeff Bezos (the founder of Amazon.com), has bought The Washington Post. These are major players in the United States' newspaper business; what do these sales mean?
For one thing, it has been noted that when the Times bought the Globe, they paid over a billion dollars, while John Henry paid only $70 million to purchase it. This is a sign that the Globe, at least, has lost over 90% of its value; many people point to this and say that the newspaper business is in general a dying one. But I can't imagine that John Henry would pay $70 million just to fold the Globe; he must expect that he can do something with it. And Jeff Bezos certainly must feel that The Washington Post is viable; he is not accustomed to throwing money down the drain, but he is known for nurturing an unprofitable company for years in the hope that he can make it profitable.
The amount that Bezos will pay to buy the Post has not been divulged, and since it was last sold in the 1930s, there is no easy comparison, as there was for the Globe, of past and present values. But in both cases, it is clear that the new owners have gambled that newspapers can still function. It will be interesting to follow both papers' fortunes.
For one thing, it has been noted that when the Times bought the Globe, they paid over a billion dollars, while John Henry paid only $70 million to purchase it. This is a sign that the Globe, at least, has lost over 90% of its value; many people point to this and say that the newspaper business is in general a dying one. But I can't imagine that John Henry would pay $70 million just to fold the Globe; he must expect that he can do something with it. And Jeff Bezos certainly must feel that The Washington Post is viable; he is not accustomed to throwing money down the drain, but he is known for nurturing an unprofitable company for years in the hope that he can make it profitable.
The amount that Bezos will pay to buy the Post has not been divulged, and since it was last sold in the 1930s, there is no easy comparison, as there was for the Globe, of past and present values. But in both cases, it is clear that the new owners have gambled that newspapers can still function. It will be interesting to follow both papers' fortunes.
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