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Of all the players to enter the space, I think this is perhaps the most interesting. When you look at an industry in extreme change and perhaps threat, I think the greatest innovation comes from folks outside the core industry. - Jason Moyer of Brand Value Advisor 

It was a rather confusing start to the week as the industry and social media sites were abuzz with Jeff Bezos, Amazon's top man buying a vacillating Washington Post for a whopping $250 million.

Following the apparent confusion came concerned industry voices as to why would a pioneering tech entrepreneur enter the newspaper industry. It's a palatable logic when Marissa Mayer builds her startup chain through takeovers, but Bezos opting for such a unusual choice left the industry folks quite baffled.

Well as the murmurs hushed a bit, we decided to have a very topical discusion on this; being closely affected by the industry swishes ourselves.

Jeff Bezos has a repuation to take calculative risks in his long spanning career. Be it the founding of Amazon.com and revolutionizing eCommerce or his offhanded human space flight startup Blue Origin, Bezos has found business opportunities in the most unusual of niches. The Washington Post seems another feather in his cap.

Covered in this deal is a mini newspaper empire - a host of small local papers like the Washington Post website and the Comprint.

From the outset, the purchase of a vacillating newspaper agency by a unrelated tech billionaire seems very weird. The story undercover could well be slightly different. Before quoting some hardcore financial data metric, let's go through the most apparent reasons as to why the tech mogul enter this business proposition:

1. Savior Role

That was the first conception that buzzed the industry as the deal was announced on August 5th. In addition, it is a personal takeover bid by Bezos as he clarified that Amazon.com will not be involved with the deal. For most it is a unworthy move for a giant like Amazon's founder. But there's always a little unknown twist in the tale.

Ken Doctor, a media analyst opines that "What Mr. Bezos can do for the Post is provide it with a cash injection when the paper needs it most – as it shifts its capital investment from print to digital." On the other hand the situation at the Post is not all that grim as is being projected. Comparing last year's advertising revenues of the Post shows a 25% increase in the second quarter and has more or less remained stable at $138 million. All in all the newspaper's online revenue streaming has been decent and Bezos is not on the loosing end after all.

2. Blanket Activism

Like most billionaires out there to take a trip in the world, Bezos could be on a laid back spree to have a possesion with a brand value through this deal. It is a common practise by wealthy families to own newspapers as a mouthpiece to both articulate and influence the society. In case of Bezos, the analysts opine that he is trying to employ a "blanket strategy" to influence internet taxation legislation at Washington. In addition Bezos could actually being doing the tech industry a world of good by playing this underhanded activist as changes in web sales and immigration policies could benefit companies to hire skilled manpower in the future.

3. Only Business

Despite the political and philanthrophic hues given to the deal in question, at the end of the day Jeff Bezos is a man of business. Not to sound too crude, he just may be making that smooth transition to social entrepreneurship as the adage goes. Akin to Bezos working style, he has often had long term goals in mind with a customer centric business model in place. In a note to his investors this year , he spelled out that "Our energy at Amazon comes from the desire to impress customers rather than the zeal to best competitors. We don't take a view on which of these approaches is more likely to maximize business success." 

With the inclusion of his new team and a "$50 million" financial aid for to cover the new staff recruitment and pension costs, the deal is all set to boost Bezos personal repertoire as a businessman.

Looking at the printing and publishing industry on the whole, it is fast being metamorphosed into a digital space of content and data. In such a case, Amazon.com and Bezos involvement with the Post could well be a giant leap forward for both. While the newspaper could use some cash flows, Bezos has a lot more to accrue than merely advertising revenues. By harnessing the newspaper's content storehouse and in-house staff to further its branding. Content marketing is after all the current happening thing in the industry.

Profit or loss, the deal has made an impact already. The story ahead is still open ended.

What do you think about these trends set by tech company CEOs and entrepreneurs? Leave a reply in the section below.

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