SAN FRANCISCO (AP) -- In a story Aug. 6 about the sale of The Washington Post, The Associated Press erroneously spelled the last name of a co-author of "The Innovator's DNA." The correct spelling is Hal Gregersen, not Hal Gregerson.
A corrected version of the story is below:
Can Amazon CEO ship online savvy to Wash. Post?
Amazon CEO Jeff Bezos sets out to show Washington Post how to make leap from print to digital
By MICHAEL LIEDTKE and BREE FOWLER
AP Business Writers
SAN FRANCISCO (AP) -- Amazon.com CEO Jeff Bezos is revered as one of the brightest minds in corporate America, but even he is still puzzling over how to reverse the financial slide threatening The Washington Post and other major U.S. newspapers.
Nevertheless, Bezos is determined to face the challenge, raising hope that his $250 million purchase of The Washington Post announced Monday will provide the newspaper industry a template for making the leap from the printed page to digital devices.
"The marriage between the newspaper industry and technology has never been consummated, but it could happen at The Washington Post now," said media analyst Ken Doctor of Outsell Inc.
Although Bezos bought The Post with his own money, most experts believe he is likely to tether the newspaper to Amazon.com Inc.'s products. He might also infuse the newspaper with some of the customer-first concepts that helped turn the Seattle company from an online book store into a multi-dimensional business that sells a multitude of merchandise and runs data centers that power other websites around the world.
"Just having his brain in the room will force people to confront digital in a way they haven't before," predicted Jerry Ceppos, a former newspaper editor who is now dean of mass communications at Louisiana State University.
Bezos, 49, made it clear that he has no magic formula for turning The Post around. The newspaper is the anchor of a division that lost $54 million at The Washington Post Co. last year while generating revenue of $582 million -- 39 percent less than it did in 2005.
"There is no map, and charting a path ahead will not be easy," Bezos wrote in a Monday letter sent to Post employees after his surprise acquisition was announced. "We will need to invent, which means we will need to experiment."
According to an Amazon spokesman, Bezos wasn't available to be interviewed Tuesday about his plans for the Post.
Bezos' purchase of The Post makes him the latest billionaire to funnel some of his money into the ailing newspaper industry. Berkshire Hathaway Inc. CEO Warren Buffett has assembled a portfolio of more than 30 small and medium-sized newspapers while Boston Red Sox owner John Henry recently agreed to pay $70 million for his hometown newspaper, The Boston Globe.
Buffett, renowned for investing in out-of-favor companies, also happens to be one of the largest shareholders in The Washington Post Co., which is selling its namesake newspaper to Bezos. Buffett's penchant for going against the grain and focusing on long-term investments are qualities Bezos has embraced with phenomenal success.
Amazon's nearly two-decade history under Bezos' leadership suggests The Post is likely to try things that other newspapers steeped in tradition have never dared to attempt.
"Ever since he was a little kid, it got deeply ingrained into Jeff that experimentation is the answer to everything," said Hal Gregerson, who interviewed Bezos for his 2011 book, "The Innovator's DNA." ''Exploring the edges is one of Jeff's counter-intuitive skills. If you go back to when he started Amazon, he was paying attention to something out of the corner of his eye and turned it into something that others didn't see."
It's impossible to predict the bright ideas Bezos might explore, partly because reviving the Post would probably take years to pull off. Experts are floating a host of possibilities. Bezos could, for instance, deploy the technology that Amazon uses to recommend books, movies and music to consumers to enable the Post to automatically tailor digital news packages to each reader's interests. He might impose more fees to read the Post's content online. At the same time, he might bundle free subscriptions as part of Amazon's Kindle Fire tablet or for consumers who buy Amazon's "Prime" service for free shipping. He could even include special offers in the printed edition for discounted or free Amazon.com deliveries.
The Post and other newspapers might not be around that much longer, unless radical changes are made. Some of the biggest newspapers already have had to seek refuge in bankruptcy court to reshuffle their finances during the past five years and the outlook still looks grim. Based on his recent conversations with publishers, analyst Doctor believes revenue is likely to continue to slip for the next five years, too.