Ever since Amazon founder Jeff Bezos bought The Washington Post for $250 million in October 2013, pundits have been wondering why.
On Tuesday, during a panel discussion hosted by Business Insider — in which he is also an investor — a few answers began to emerge.
When he was first approached by an intermediary for then-CEO Donald Graham, Bezos said he had to be persuaded it was a good idea and was worried that the outlook for the newspaper industry was "hopeless." Slowly, he changed his mind and did the deal.
"I didn't know anything about the newspaper business, but I did know something about the Internet," he told Business Insider CEO and Editor-in-Chief Henry Blodget. "That, combined with the financial runway I can provide, is the reason why I bought the Post."
Among the few innovations so far is an app for the paper on Amazon's Kindle e-reader. It is free for six months and then readers pay $1 for the next six months.
Bezos said there is a push to transform the paper from being a dominant local player into one with a national and global following.
"The Post was always — even though it had a national and global reputation, the product was local, and that was by design," he said.
He acknowledged that the strategy was deliberate and "as a business it was super-successful for decades, but that is what we're changing."
"The Post has the good fortune of being the newspaper of the capital city of the United States of America, and that's a good starting point to be a national and even global publication, so that's the thing that's changing," he said.
The company also said Tuesday that it has hired Jed Hartman, a former group publisher at Time Inc., to be the chief revenue officer of the Post.
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