Washington Post Co. tries to survive without its newspaper
Wednesday, August 07, 2013 2:26 PM
After Washington Post Co. sold its flagship newspaper, the company's future may be tied to the for-profit college Kaplan Inc., Bloomberg reported.
Kaplan's role will present challenges for the company as for-profit colleges struggle with declining enrollment. Government officials have scrutinized for-profit colleges' marketing, job placement claims and student debt levels.
In 2012, Washington Post Co., which this week sold its newspaper to Amazon.com Inc. CEO Jeff Bezos, got more than half of its $4 billion in annual revenue from education businesses. But amid declining enrollment, Kaplan stopped signing up students at nine campuses and reported a $105.4 million operating loss for the year.
As the Post company tries to survive without its newspaper, CNN Money questions if the Los Angeles Times is the next paper to look for new owners.
The Times is owned by Tribune Co., which also owns the Chicago Tribune and other papers. Tribune Co. emerged from bankruptcy in December and subsequently explored the possibility of selling its newspaper business. So far, the company hasn't found the right buyer.
Possible buyers include Rupert Murdoch's News Corp., Charles and David Koch and a group of investors in Southern California including business magnates Eli Broad and Ron Burkle.