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Posted by thm 5 hours ago

How Jeff Bezos Brought Down the Washington Post(www.newyorker.com)
195 points | 201 commentspage 2
afavour 3 hours ago|
It's very curious to reflect on the change in Bezos over the last decade or so. No, The Washington Post doesn't make money. But surely he never bought it under the expectation that it would. A billionaire buys a newspaper for other reasons than that. And he initially spent a ton of money on the paper, they even had a superbowl ad. He was happy to go toe to toe with the first Trump administration.

Fast forward and he's blocking the paper from endorsing presidential candidates (that alone lost 250k subscribers), he's reforming the opinion section to match the views of the current administration... and now he's just straight up destroying half of it. A lot has happened in his personal life too (divorced, remarried) and I'm curious what he'd actually say if he was to look back and reflect on the path taken. I wonder how reflective it is of the rich retreating into bubbles in the COVID era and never emerging from them. Alas, we probably won't ever know. There aren't many places left to report on it!

pluc 3 hours ago||
1. He bought it

That's it, that's how he did it.

kccqzy 2 hours ago|
The article clearly said that in the first few years after Bezos the newspaper was doing very well and even expanded. It was also very successful during the first Trump administration. It just didn’t know what to do after the end of the first Trump presidency.

> Buoyed by Bezos-funded expansion and the public’s fixation on the new Trump Administration, the number of digital subscribers soared from thirty-five thousand when he arrived to two and a half million when he left, in the summer of 2023. But Ryan failed to develop an adequate plan for how the newspaper would thrive in a post-Trump environment.

openasocket 3 hours ago||
I genuinely don't get it. I just don't understand how billionaires think.

Everyone knows why he bought the Washington Post: it was for clout and prestige. Just like how the titans of industry built opera houses and libraries in centuries past. You aren't buying it to make a profit. You take care of something valued by society, and you win some respect from society. Conversely, if you burn that thing to the ground, society will hate you.

So why is the profitability of the Washington Post such a concern all of a sudden? Sure, they lost $100M in 2024, but Bezos didn't buy the Post to make money! And it's not like money is tight. Bezos is worth over $250B; in the last few days alone the jump in AMZN stock increased his net worth by over $5B. If he were to hand that $5B over to the Washington Post, they could keep on losing money at that rate for another half of a century! The article makes this exact point in the last few paragraphs.

If Bezos was genuinely concerned about alienating Trump or whatever, why not just sell the Post? Why try to undermine it like this? You are pissing off the people who like the Post, and I don't think the people who hate the Post are really going to care.

groundzeros2015 3 hours ago||
100M burns seems a little excessive?
UncleMeat 1 hour ago||
Bezos could burn this amount every year for 2,500 years before exhausting his current wealth.
groundzeros2015 41 minutes ago|||
Is he going to login to etrade to market sell 100 mil of Amazon stock every year? 20% cap gains and then whatever additional tax the gross amount incurs? That will also lower the price.

I’m just saying this is kind of an absurd amount for a mediocre newspaper with ok reach.

eudamoniac 53 minutes ago|||
What is your point? I could burn $400 in my fireplace every year for 2,500 years before exhausting my current wealth. That doesn't mean it's not stupid.
Afforess 3 hours ago|||
Power + Control >> Money.

That’s it.

kgwxd 3 hours ago|||
Never attribute to vanity that which is adequately explained by despotism.
ativzzz 3 hours ago|||
> I just don't understand how billionaires think.

What he's really buying is power. Even your example of opera houses vs libraries accomplishes two different goals.

Opera houses are places for elites to gather and experience "culture". It means is you own a club for other rich people and create a form of soft power by controlling who gets invited to and can hang out at your club - and maybe put on some shows that everyone can buy tickets to as your "philanthropic contribution to society"

A library is more of a common use. At least in the modern day. Maybe 100 years ago libraries were similar to opera houses - mostly frequented by elite/educated and created a club for them to hang out at. Similar to donating to universities. But they're free for the public, so I'd argue this is quite a boon to common society.

But buying a media company is straight power. You are buying influence over how the public receives information. This is why Musk bought twitter. This is why Murdoch bought Fox news. This is why a billionaire conglomerate forced TikTok to sell itself to them. At this point, more money provides diminishing returns on power, so they buy influence in other ways.

gowld 3 hours ago||
It wasn't for clout and prestige. It was to protect Amazon and Blue Origin from news critical coverage and from policy advocacy for regulations.
inquirerGeneral 2 hours ago||
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onetokeoverthe 5 hours ago||
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coldpie 4 hours ago||
[flagged]
rootusrootus 3 hours ago||
To use Bezos as an example, how would you work that out? Take away his ownership of Amazon as it increases above 100MM? Who would you give it to? Would you nationalize it?
coldpie 3 hours ago|||
> Take away his ownership of Amazon as it increases above 100MM?

Yes, that sounds reasonable to me. No single person should have control of a company with that much power.

AnthonyMouse 3 hours ago|||
> No single person should have control of a company with that much power.

Someone is going to have control of it, if it exists. But if you don't want companies of that size to exist then you need antitrust and lower barriers to new entrants rather than taxes.

coldpie 3 hours ago||
I also strongly support enforcing our existing antitrust laws, yes.

> Someone is going to have control of it, if it exists

Sure, a board, no member of which may be worth more than $100M.

AnthonyMouse 3 hours ago|||
> Sure, a board, no member of which may be worth more than $100M.

What does that change when the CEO is still commanding a trillion dollars in capital?

Also consider how you're going to choose the board of a trillion dollar company if no natural person owns more than 0.01% of it. It's going to end up being controlled by Wall St funds instead. How do you expect that to go?

coldpie 3 hours ago||
> What does that change when the CEO is still commanding a trillion dollars in capital?

Their incentives. They've already hit the wealth cap, they can't make their high score any higher. The incentive to steal from their workers is gone.

> How do you expect that to go?

Better than what we have now, hopefully. I'm open to suggestions if you have a better idea for how to reign in these people!

AnthonyMouse 3 hours ago||
> They've already hit the wealth cap, they can't make their high score any higher. The incentive to steal from their workers is gone.

The implication here is that their compensation would then be completely disconnected from their performance. Then their incentive is to go all-in on nepotism or get into the favors business etc. Making "wealth" about soft power is not going to make things better.

> Better than what we have now, hopefully.

We already have some companies controlled by founders and others controlled by Wall St. The latter have a strong tendency to be worse.

> I'm open to suggestions if you have a better idea for how to reign in these people!

Again, the problem is the size of the company. The size of the individual's bank account is the consequence rather than the cause. What percentage of people with >$100B got the bulk of it by being an early shareholder of something which is now a megacorp? It's pretty much all of them, right?

Set up a regulatory environment where companies don't get that big. Get rid of DMCA 1201 and anything else that can be used to thwart adversarial interoperability. Make blocking interoperability an explicit antitrust violation and let individuals sue over it instead of requiring it to be done by a bought-off government prosecutor.

Lower friction to new competitors. We need a digital payments system that doesn't doesn't require the customer to give the merchant a secret number that could be used to make charges at other merchants, without needing a middle man, because it's propping up the middle men and makes it so people are less willing to patronize smaller/newer companies. The risk of making a $5 purchase from a new website you've never heard of should be $5, not having your credit card stolen, without exposing the new company to being suddenly vaporized by Paypal for no apparent reason.

There are also a lot of indirect reasons, like the artificial scarcity of mixed-use zoning and housing in general. There are way too many areas where it's illegal to start a business out of your home, but that's the only economically viable way for many of them to get started, so instead people get corporate jobs and we get larger corporations.

In general you have to look past the stated reasons for things and ask, what is this policy actually doing? Incumbents love to hide competition-destroying rules behind consumer protection or safety rationalizations because a marginal or purely hypothetical safety improvement generally isn't worth wiping out 80% of smaller competitors, especially when better safety improvements are possible without doing that, but it makes it onto the books if the incumbents pretend the reason is actually safety even though the thing is structured to raise fixed costs and wipe out smaller companies.

JumpCrisscross 3 hours ago|||
> a board, no member of which may be worth more than $100M

This is just a power transfer to Wall Street and CEOs.

We live in a wealthy society. Folks will be wealthy. The problem isn’t the wealth per se but the distribution, in particular, the pain at the bottom; the channels between wealth and politics; and the connection between wealth and morality in fascistic-Christian circles.

rootusrootus 3 hours ago|||
Alright, but I really would like to hear your solution for the next question ;-).
ryandrake 3 hours ago|||
I'm sure there are plenty of creative ways to have the general public reclaim the excess wealth. How about a public mutual fund where every citizen owns 1 share. Every year on tax day, all personal holdings over $100M (or whatever the threshold is) are seized and ownership is transferred to that fund.
coldpie 3 hours ago|||
Sure. Turn it into a public company with a board, sell the shares to reduce any individual's ownership stake to <$100M.
pllbnk 3 hours ago||||
I think the OP’s proposal is great but impossible to implement right away. Some steps have to be taken towards that direction though. First, eliminate borrowing using their stocks as collateral, thus avoiding capital gains tax. That would immediately reduce the number of new mega yachts.

But the biggest boon for society would be progressive taxes on inheritance. It wouldn’t be government’s problem to figure out how it would work. It would be on inheritor to figure out how to pay the taxes on their newly inherited wealth.

input_sh 2 hours ago||
I have an even simpler step one: increase the IRS budget significantly so that they actually have enough resources to go after the big guys.

It's on a downward spiral consistently, and it was further cut by 9% this year.

strbean 3 hours ago||||
Liquidating shares over some fixed interval (1 year?) would be one option.
LargeWu 3 hours ago||||
Billionaires are allowed to have their cake and eat it too in the form of loans backed by their stock holdings. This is how they get to have $500MM yachts without having to actually sell their stock and lose control of their companies. It's how they pay themselves without having to pay taxes, because it's treated like debt and not income. Treating these like capital gains would be a start.
EricDeb 3 hours ago|||
couldnt you have control shares that weren't worth money?
JumpCrisscross 3 hours ago|||
> a hard wealth cap. 100% tax on wealth above $100M

I can’t think of a better policy suggestion for folks who have more than $100mm than this. Sort of like “corporate death penalty” mostly serves to distract from fines, “no more billionaires” conveniently distracts from e.g. adding tax brackets to pay for increasing the ones we have.

clcaev 3 hours ago|||
Billionaire status points not only to extraordinary talent but also to remarkable positioning in our business environment and regulatory framework.

If that environment/framework has been unjust, how could you remedy it? A taking seems deeply problematic to me. That said, a renewal of our nation's antitrust laws might be a more effective and palatable approach.

AlfredBarnes 4 hours ago|||
While I don't disagree, that is unrealistic.
coldpie 3 hours ago||
I'd love to hear more ideas for how we can reduce these peoples' power to control our society!
trentnix 3 hours ago|||
Reduce the power of government if you want to reduce the power certain individuals have over society. Because government is such a single, extremely powerful lever it becomes a singular target of influence and corruption by the rich and influential. Why do you think so many of the rich and powerful move to DC or keep residences there?

The insistence of so many to take away power from Jeff Bezos, who won’t send armed goons to my house if I choose not to buy stuff from Amazon, and giving more power to the government that sent goons to Matt Taibbi’s house the same day he was giving Congressional testimony is an egregious case of missing the plot.

manuelmoreale 3 hours ago||||
The French have a tool they used quite successfully during the revolution back in the late 1700s.

Jokes aside, unless we go through major societal reforms (that would likely involve a lot of chaos) I don’t see this problem being fixed anytime soon.

abvdasker 3 hours ago||||
It would take one or two not especially complicated law taxing wealth and loans against equity. Congress could do this tomorrow but guess who controls congress. And cap political spending like every other sane democracy.
SJC_Hacker 3 hours ago||||
Support locally owned, small businesses
quantummagic 3 hours ago|||
All you're doing is giving the power to someone else. Giving way more power to politicians like Donald Trump. The reality is, there will always be powerful people, with outsized control and dominion over others; it's baked into the fabric of reality. Thinking otherwise is a utopian fantasy.
EricDeb 3 hours ago||
well ideally more power should be distributed amongst normal people
quantummagic 3 hours ago||
Wishing it could be so, flies in the face of everything we know about human nature, power dynamics, and game theory.
ncruces 3 hours ago|||
Will that save newspapers?
coldpie 3 hours ago||
It might! Reducing the power held by this handful of billionaires necessarily means that power is spread out amongst more people. That means the people who work at newspapers might have the power to influence laws and society in a way that benefits the workers instead of the owners.
ncruces 3 hours ago||
Will that make people want to pay for news? Or do you think taxpayers should pay for news? Otherwise, what will pay for news?
coldpie 3 hours ago||
Good questions! A United States where all of our public policy is not controlled by a couple dozen billionaires who are trying to increase their personal high score is so different it's hard to know how things would shake out. As an example, perhaps in this alternate world, enough of Facebook would be owned by non-billionaires that they could direct the company to change how it presents news and sells ads such that it would make an ad-based business model viable. Who knows! What we do know is the current system did lead to newspaper collapse. We know the current system does not work. Let's try something else.
IncreasePosts 3 hours ago|||
So if you build a company that all of the sudden everyone wants a piece of, you aren't allowed to keep it

If someone says a valued family heirloom of mine is worth $110M I would be forced to sell it?

coldpie 3 hours ago||
> So if you build a company that all of the sudden everyone wants a piece of, you aren't allowed to keep it

You're allowed to keep $100M of it! That's seriously a lot of money!

IncreasePosts 3 hours ago||
It's a business, not money. If I'm forced to sell parts of the business I am building, and then the new owners drive it into the ground and zero out the rest of my equity, is it just "tough cookies"? Can I get a tax refund?
coldpie 3 hours ago||
Sure, I'm open to softening the edges a bit if you have suggestions there. Good incentive to plan your partners in advance ;) But yeah, in the end, if you own $100M of a company, I bet you'll still land on your feet even if it all goes down in flames somehow.
pllbnk 3 hours ago|||
I don’t get why reasonable claims like this get downvoted. Are billionaires downvoting them? Do so many other ambitious people expect to become billionaires at some point in their lives?
groundzeros2015 3 hours ago|||
This comment is repeating a political slogan with no consideration of the content of the article.

Also the slogan is a Marxist alternative theory of wealth and power which conflicts with some basic premises of being interested in startups and is debunked in pg readings.

coldpie 3 hours ago||
> This comment is repeating a political slogan with no consideration of the content of the article.

Bezos was able to purchase one of the nation's most important news outlets because he is a billionaire. If his wealth was capped at $100M, he would have had to pool resources with many other ultra-wealthy individuals to effect the same purchase. These people would have competing interests, and would also themselves be open to being bought out because their ownership stake in the company would be small. This would be good for the country, because one person being able to turn an important news outlet into his personal propaganda machine is bad, as the article describes.

groundzeros2015 2 hours ago||
You’re imagining a system where one variable can change and all others hold constant.
coldpie 2 hours ago||
Yeah probably! Do you have any ideas for how we can reduce the amount of power individuals like Bezos have over our society?
groundzeros2015 2 hours ago||
Has bezos made any decisions for you lately? Money tends to be a pretty weak form of power.

What we are seeing is bezos trying to translate money into media power, which is real. But it doesn’t seem to have worked out that well. His paper is not that influential or distinct. He is unable to wield much control over the journalists likely because they operate within a tight culture that exists across outlets.

Your instinct is that media is actually real power. Isn’t a few people operating the media scarier than a few people being able to consume a lot?

But then why is media powerful? Public opinion is directly useful for winning elections. But also indirectly as public officials need to cater to the public.

bigstrat2003 3 hours ago||||
I downvoted it because I think that forcibly taking away people's wealth (however much or little they have) is immoral in the extreme. However, I did just now vouch for it because the post isn't breaking any rules even if I do think it's a bad take.
pllbnk 2 hours ago||
Let’s not discount with what means that wealth has been acquired in the first place. One man’s wealth might be poverty for the thousands. That’s why we got social welfare, it’s just not doing enough. At this point I would say a random store floor cleaner is more valuable for society than someone like Jeff Bezos.
tengbretson 3 hours ago|||
My grandchildren will likely need to be billionaires just to retire.
outside2344 3 hours ago||
Remember that once that happens the next year somoene will propose a 100% tax on wealth above $1M.

Then $100k.

And then you live in Cuba.

miltonlost 3 hours ago||
Will they tho?
mudil 3 hours ago||
The murder of the Washington Post has been ruled a suicide. Guess peddling a one sided world view is not very profitable.
manesioz 3 hours ago|
Yes, _Bezos_ brought down WaPo. Surely there's no other reason... Seeing as traditional news outlets are all doing so well across the board and trust in them is at all-time highs. It's the Billionaire.
miltonlost 3 hours ago|
He bought the company, changed the editor in chief, forced the editorial board to not make an endorsement in 2024. That decision alone helped drop thousands of subscribers due to its overt spiking from the Billionaire. So yes. He is to blame entirely for tanking the reputation of the WaPo to be nothing more than billionaire trumpet. That's going to turn off the vast majority of people who had subscribed to what the WaPo had been.