Bezos Paid 17 Times Adjusted Profit for the Washington Post

Bloomberg reports today:

Jeff Bezos’s purchase of the Washington Post may look like a steal, yet it came at a rich valuation that newspapers such as the New York Times Co. (NYT) may only dream of obtaining.

The founder of Amazon.com Inc. (AMZN) plunked down $250 million for the Post newspaper division, about 17 times adjusted profit, according to data compiled by Bloomberg. That multiple implies a valuation for the New York Times of about $4 billion — more than double its current market value. Major metropolitan newspapers should fetch 3 or 4 times profit, said research firm Outsell Inc.

“Bezos paid a friendship premium of $200 million here,” Ken Doctor, a media analyst at Burlingame, California-based Outsell, said in a phone interview. “There are a handful of news brands in the world that will merit some kind of premium over the usual multiple, but the multiple over the multiple here seems really high.”

Published by Newley

Hi. I'm Newley Purnell. I cover technology and business for The Wall Street Journal. I use this site to share my stories and often blog about the books I'm reading, tech trends, sports, travel, and our dog Ginger. For updates, get my weekly email newsletter.

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