A decade ago, Jeff Bezos bought a newspaper. In 2023, he’s paying attention to it again
During Martin Baron’s time as executive editor at The Washington Post, he encountered a persistent issue. Jeff Bezos, who had acquired the newspaper for $250 million in 2013, wanted Baron to transform it from a regional news outlet into a global one.
However, with Bezos keeping a close eye on the budget, he preferred to limit the number of new editors, classified as “indirect” employees, while maintaining a larger proportion of “direct” employees, such as reporters. This created a challenge in balancing the transformational goals with budget constraints.
According to Martin Baron’s forthcoming memoir, he and his deputies devised a workaround to address the budgetary constraints and avoid raising concerns higher up in the organization.
When proposing new positions to Jeff Bezos and his representatives, they would remove the term “editor” whenever feasible and instead use alternative titles such as “analyst” or “strategist.” By doing so, they could still fill essential roles and accomplish their transformational goals without triggering alarm over the number of new editor positions being added.
In recent times, Jeff Bezos has become more knowledgeable about the news business, and he has increased his involvement in The Washington Post’s operations. This heightened involvement came as staff morale declined, and the newspaper faced challenges in its business performance.
Bezos has expressed his desire for The Washington Post to be profitable. However, despite his efforts and involvement, it appears that the newspaper is unlikely to achieve that profitability target in the current year. The competitive nature of the media industry and other factors may be contributing to the challenges in reaching this goal.
According to insiders familiar with The Washington Post’s financial situation, the newspaper is projected to incur a loss of approximately $100 million in 2023. Additionally, it is anticipated that the company will not meet its expected ad revenue targets for the year. The sources who provided this information chose to remain anonymous to protect the confidentiality of internal financial matters.
The Post has faced challenges in expanding its base of paying customers since its digital subscriptions reached a peak of 3 million after the 2020 election. As of now, the newspaper’s digital subscriber count has declined to around 2.5 million, indicating a struggle to maintain subscription growth.
These financial and subscription-related difficulties pose significant obstacles for The Washington Post in its efforts to become profitable and address the changing dynamics of the news industry.
Jeff Bezos, the owner of The Washington Post, declined to be interviewed by the media. However, Patty Stonesifer, who was serving as the Post’s interim chief executive at the time, stated that Bezos expressed satisfaction with every dollar invested in the company. This suggests that Bezos was supportive of the financial investments made in the newspaper.
According to an individual familiar with Bezos’s plans, The Washington Post had intended 2023 to be a year focused on making investments. This strategy indicates that the company was prioritizing expansion and improvement efforts, even if it meant incurring losses in the short term to achieve long-term growth and success.
Patty Stonesifer, the interim chief executive of The Washington Post, expressed great enthusiasm for the newspaper’s future, stating that she is optimistic about what can be achieved in the coming decade. She believes that Jeff Bezos’s second decade of ownership will be even more exciting for the Post.
When Bezos acquired The Washington Post, it marked the end of decades of ownership by the Graham family, known for guiding the paper through significant moments in journalism history, including its legendary coverage of Watergate and the Pentagon Papers. Bezos’s ownership signified a new era of expansion, with the involvement of one of the world’s most famous entrepreneurs. He encouraged the staff to embrace digital experimentation, leveraging the power of the internet’s global reach, similar to how Amazon had achieved remarkable success.
Bezos actively participated in product decisions and brought in Fred Ryan, a former CEO of Politico, as the publisher, replacing Katharine Weymouth, a member of the Graham family. Martin Baron continued to serve as the top editor of the Post until his retirement in 2021, earning praise from Bezos as an exceptional journalism mentor and leader. Bezos played a significant role in selecting Sally Buzbee as Baron’s successor, inviting her to his home in the upscale Kalorama neighborhood of Washington, D.C.
After an initial period of active involvement, Jeff Bezos became less visible in The Washington Post’s newsroom following his decision to step down as Amazon’s CEO. However, in January, things changed when Sally Buzbee, the Post’s top editor, spoke with Bezos and expressed urgent concerns about low staff morale at the newspaper. Buzbee attributed much of the morale issue to missteps made by the Post’s chief business executive, Fred Ryan, according to sources familiar with her remarks.
Buzbee’s relationship with Ryan had been tense, and he had reportedly accused Cameron Barr, Buzbee’s top deputy, of leaking information about the newspaper’s internal operations to the media. In addition, Ryan had sought Barr’s removal from his position. Ryan, through a spokesperson, denied making accusations against Barr or trying to have him ousted. The Post declined to comment on the situation. Sources familiar with the matter stated that there was no evidence to support the claims of leaking.
This situation indicates internal tensions and challenges within the leadership of The Washington Post, with concerns raised about staff morale and clashes between top executives. As of now, it remains to be seen how the newspaper will address these issues and continue its trajectory in the media landscape.
The situation at The Washington Post has been marked by frustrations among many employees who perceive a stagnant and unchanging business culture under the leadership of Fred Ryan. These concerns were brought to the attention of Sally Buzbee, the Post’s top editor.
The newspaper has also experienced a significant loss of talent over the past year. Several prominent reporters, including Pulitzer Prize winners Eli Saslow, Robert Samuels, and Stephanie McCrummen, have left, along with key editors such as Cameron Barr, Steven Ginsberg, David Malitz, and Sharif Durhams. Additionally, top executives like Shailesh Prakash, Joy Robins, Kat Downs Mulder, and Kristine Coratti Kelly have departed the organization.
Notably, some of the departing employees, such as Robins, Saslow, Malitz, and Ginsberg, have joined The New York Times Co., indicating that the competition for talent in the media industry remains fierce. This exodus of experienced individuals from the Post highlights the challenges the newspaper is facing in retaining its top talent and maintaining stability in its leadership and business operations.
In January, Jeff Bezos made a rare appearance in The Washington Post’s newsroom. He participated in a morning news meeting and later met with a group of Post journalists. During these interactions, some employees expressed their concerns about Fred Ryan’s leadership and the direction the newspaper was taking.
In June, Fred Ryan announced his resignation as the Post’s chief business executive. He informed the staff that he intended to start the Center on Public Civility, a new initiative under the Ronald Reagan Presidential Foundation, where he serves as the board chair. Bezos agreed to provide funding for this center.
In a recent interview with The New York Times, Ryan mentioned that he had numerous discussions with Bezos about the establishment of the new organization.
Following Ryan’s departure, Bezos appointed Patty Stonesifer, a longtime friend who has been on Amazon’s board for over two decades, to lead The Washington Post in his absence. Stonesifer assumed the role of interim CEO while the newspaper began its search for a permanent replacement.
These changes in leadership and Bezos’s involvement in the decision-making reflect the ongoing evolution and dynamics within The Washington Post, as it navigates the challenges and opportunities in the media industry.
Patty Stonesifer, the interim CEO of The Washington Post, has already started making her mark on the newspaper. Notably, she is not drawing a salary for her role. She has been actively engaging with staff members, holding frequent meetings to gather feedback on what she calls “flowers” (things that people are proud of and wish to nurture) and “weeds” (issues that need to be addressed).
On July 11, Stonesifer, along with Fred Ryan, made new appointments to the leadership team. They hired Alex MacCallum, a seasoned professional with experience at The New York Times and CNN, as the Post’s chief revenue officer. They also named Vineet Khosla as the newspaper’s chief technology officer.
Stonesifer has consistently emphasized that Jeff Bezos remains fully committed to the business and views The Washington Post as a legacy for his family.
Bezos has personally involved himself in an experimental project within the Post’s opinion section. He has collaborated with editorial page editor David Shipley, whom Bezos helped recruit from Bloomberg. This initiative aims to explore a platform for readers in different U.S. cities to submit their own opinions and commentary. The project is still in development and does not yet have an official name.
These developments signify ongoing efforts to strengthen The Washington Post and innovate its offerings under Stonesifer’s leadership, with support from Bezos as the newspaper continues to evolve in the ever-changing media landscape.
Jeff Bezos has reportedly shared with close associates that the new endeavor, developed in collaboration with former New York magazine editor Adam Moss, aims to engage readers who may have disengaged from traditional news sources. The project appears to be an opportunity for The Washington Post to reach a broader audience.
Bezos has been actively involved in the development of this initiative, holding regular meetings with editorial page editor David Shipley to discuss its progress and potential impact.
In addition to this project, other changes are in the pipeline for The Washington Post. The 54-year-old Style section is scheduled for a reboot in September, and this overhaul will include a redesign of the online platform.
Fred Ryan’s departure from the Post is perceived by employees as a win for Sally Buzbee, the top editor. Buzbee’s relationship with the newsroom has had its moments of tension since she joined from The Associated Press two years ago. Nonetheless, the newspaper has continued to produce high-quality journalism, evidenced by winning two Pulitzer Prizes for reporting in May. Furthermore, a book authored by two Post reporters also received the general nonfiction prize.
With the appointment of Patty Stonesifer as the interim CEO and her close ties to Jeff Bezos, there is a renewed sense of hope and optimism within the newsroom. The collaboration between Buzbee and Stonesifer is viewed positively, and staff members are heartened by the potential for positive changes under Stonesifer’s leadership.
Overall, these developments signal a period of transformation and innovation at The Washington Post, with a focus on expanding its reach, improving online platforms, and fostering a more energized and hopeful atmosphere within the organization.
