Why Would Jeff Bezos Buy An Old Fashion Newspaper?

On Monday, it was reported that Jeff Bezos of Amazon (NASDAQ:AMZN) fame, paid a reported $250 million in cash to purchase the Washington Post (NYSE:WPO) newspaper. I say, "congratulations Jeff," it was a brilliant strategic move on your part. Now it must be said that this was not Amazon purchasing the Washington Post, but rather Jeff Bezos personally purchasing this property. So you have to ask yourself, what would a savvy Internet guy want with a newspaper?

Here's my take on it, Amazon has become a juggernaut on the Internet in terms of Internet commerce. I use Amazon myself like millions of others and it is a great service. When you're looking for a product, it's easy to go to Amazon and forget most every other site on the Internet.

Somewhere along the line, there is going to be some politician who will say that Amazon is a monopoly and should be broken up, as it stifles competition. So what's the perfect defense and check mate for an attack on your biggest investment and Internet baby? To me, owning and controlling the most powerful newspaper in a politically-driven town like Washington D.C., could give him power not attainable through other avenues.

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Put the power of the Trade Triangles to work for you

So the question is, can Jeff Bezos work his same magic with the Washington Post? Just look back in history at how William Randolph Hearst controlled the news and the news media in America, and the power it gave him. Whoever controls the media, can have a huge influence on the sentiment and direction of the country. That I think, is the ultimate goal of Mr. Bezos.

I think Jeff Bezos' plan for the Washington Post is going to be very similar to the plan he has for Amazon. Forgo profits, and build until you eventually create unstoppable momentum and you become a king maker in the news industry.

Don't think for one moment that Amazon is not politically smart. A little over a week ago, employees of Amazon contributed $116,000 to the democratic party for President Obama to fly down to Chattanooga, Tennessee to be at the opening of one of their new distribution centers.

In today's video, I will be looking at the Washington Post (NYSE:WPO) and seeing how our Trade Triangles fared in trading this stock.

Have a great trading day,

Adam Hewison
President, INO.com
Co-Creator, MarketClub

4 thoughts on “Why Would Jeff Bezos Buy An Old Fashion Newspaper?

  1. My take exactly. Bezos is gaining access (control over?) to the information flow. He can now shape public opinion, plus he can distribute it over his handheld readers. Perfect way to sway low information Americans.

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