After Obama Appears at Amazon, Amazon CEO Buys Washington Post

Daniel Greenfield, a Shillman Journalism Fellow at the Freedom Center, is a New York writer focusing on radical Islam. He is completing a book on the international challenges America faces in the 21st century.


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It’s an interesting purchase since the Washington Post isn’t good for much except political influence. Buy buying it, another digital noveau riche is leveraging himself forcefully into a position of serious political influence.

Questions have already been raised about collusion between Amazon Inc and Obama Inc after the anti-trust attack against Apple by the DOJ and Obama’s recent Amazon speech. This will only increase them.

Let’s start with the secrecy…

The deal was conducted in such secrecy that even the Post’s own stable of investigative reporters were taken by surprise when the paper published on its website a story about the transfer.

And then on to the new financials. Jeff Bezos, the CEO and founder of Amazon, is paying 250 mil for the Washington Post.

The Washington Post Company was worth 9.5 billion in 2004. It hasn’t been worth a fraction of that in a while. Bezos is buying the loss leader newspapers, while the WaPo company gets to keep the more profitable Kaplan line and the digitally oriented Slate. Normally you would expect it to be the other way around.

Instead Bezos gets the paper and a bunch of suburban area newspapers and El Tiempo Latino. It’s not a great business move, but Bezos has enough money to look at the larger influence picture.

Amazon is a success on paper, but has its problems. Winning the big fights will take political influence in a political environment dominated by crony capitalism.

By buying the Post, Bezos has picked up a nuclear weapon in a crony capitalist arsenal.

 

  • okokok

    The Three Biggest Lies About Why Corporate Taxes Should Be Lowered
    Lie #1: U.S. corporate tax rates are higher than the tax rates of other big economies. Wrong. After deductions and tax credits, the average corporate tax rate in the U.S. is lower. According to the Congressional Research Service, the United States has an effective corporate tax rate of 27.1 percent, compared to an average of 27.7 percent in the other large economies of the world.

    Lie #2: U.S. corporations need lower taxes in order to make investments in new jobs. Wrong again. Corporations are sitting on almost $2 trillion of cash they don’t know what to do with. The 1000 largest U.S. corporations alone are hoarding almost $1 trillion.

    Rather than investing in expansion, they’re buying back their own stocks or raising dividends. They have no economic incentive to expand unless or until consumers want to buy more, but consumer spending is pinched because the middle class keeps shrinking and the median wage, adjusted for inflation, keeps dropping.

    Lie #3: U.S. corporations need a tax break in order to be globally competitive. Baloney. The “competitiveness” of American corporations is becoming a meaningless term because most big U.S. corporations are no longer American companies at all. The biggest have been creating way more jobs abroad than in the U.S.

    A growing percent of their customers are outside the U.S. Their investors are global. They do their R&D all over the world. And they park their profits wherever taxes are lowest — another reason they pay so little in taxes. (Don’t be fooled that a “tax amnesty” that will bring all that money back to America and generate lots of new investments and jobs here — see item #2 above).

    Corporations want corporate tax reduction to be the centerpiece of “tax reform” come the fall. The president has already signaled a willingness to sign on in return for more infrastructure investment. But the arguments for corporate tax reduction are specious.

    • Nabuquduriuzhur

      Ultimately, it comes down to the 1960s wanting something for nothing.

      Don’t want to pay people for their work. Don’t want to pay the actual cost of an item, so they buy cheap garbage elsewhere.

      It’s normal for localities to bribe companies. They expect it now. Take
      Facebook. They were bribed by being given a pass on taxes in Crook
      County, and so they built their data center there. It will bring a few
      bucks from the 50 or so people working there, but that’s about it. Then,
      when the deal expires, they just leave and go to the next fool that
      will do the same bribe for them.

      • okokok

        so your point is everyone is a crook and therefore corporations should just screw us? what a ridiculous paradigm; I feel sorry for you.

        • ziggy zoggy

          The point is that all your heroes are crooks and bloodsuckers and you are too.

          • okokok

            The real question is what propels your astounding ignorance…too many drugs or alcohol, little punk?

    • ziggy zoggy

      The Congressional Research Service says American corporate taxes are low? I would believe Satan before I believed those scum.
      Corporations are “hoarding” (legally earned and own) one trillion dollars? Obama spends more tax dollars than that before breakfast.
      Corporations should lose money to contribute to the collective?
      “Corporation” is only a pejorative to Marxist scum.

      • okokok

        You would of course believe imaginary things in your addled brain..it’s time for a nap and diaper change, little coward..

        • Crazycatkid

          You wandered into the wrong site, dear. Have some more fruit loops for breakfast and then turn left…

          • okokok

            I thought this was the RWNJ site, no? Lol

  • Jsjk

    And hasn’t Obozo threatened Internet retailers with an Internet Sales Tax? No wonder Amazon is sucking up to Obozo.

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  • ziggy zoggy

    Sounds like a smart business move. Obama has turned America into a banana republic, so when we reach our Venezuela toilet paper shortage stage, the Wapo will come in handy. Not everybody can afford the NYT. At least we wont have to use our bare hands, like the islamopithecines.

    • Crazycatkid

      OK, now you made me laugh….

  • ooostephen

    wait a sec, its a newspaper and they’re all dying. its hard to see how this fading industry is anything like a nuclear weapon.