By: Lucia Moses Spending Continues On New Ventures
New-business spending has cut into profits at the Washington Post Co. and the share price, at $520 last week, is down from its 52-week high of $587, but CEO Donald E. Graham said pressure to grow the family business continues to come from within, not from Wall Street.
"We're spending an unusual amount of money on new-business ventures," Graham said. "But these are riskier than the businesses we've been in for years. If some turn out to be good ones, it'll be good for shareholders."
The Post Co. has broadcast and cable TV properties, career and education services, Internet businesses, and magazines. Graham will be more active in those units now that he's given his Washington Post publisher title to Boisfeuillet "Bo" Jones Jr. A longtime chum of Graham's, Jones is the first publisher from outside the Graham family in more than 30 years.
At the flagship newspaper, which supplied about 40% of total company revenue in 1999, readership will be one of Jones' top priorities. The paper has begun a number of initiatives in the past year, but gains in weekday circulation haven't carried over to Sunday. "We're still trying to do a number of things to try and get Sunday circulation growing," Jones said.
As for Graham, the former hands-on publisher will stay in touch by keeping his title of chairman of the paper and overseeing the editorial page for a while.
"He'll still be out at night in distribution trucks," Jones said of Graham. "He loves the newspaper."
Lucia Moses (lmoses@editorandpublisher.com) is an associate editor covering business for E&P.
Copyright 2000, Editor & Publisher.
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