It came as no surprise to our readers that the Washington Post had been struggling for quite some time. Print media has steadily been on decline, giving way to technology based media outlets. But when Amazon’s CEO Jeff Bezos decided to purchase the struggling newspaper and several of its related specialty magazines and small papers, some of our Texas readers may have wondered what this would mean for Washington Post Co. and its other businesses.
As media sources are pointing out, Washington Post Co. was left with little more than a hodge-podge of companies after the buyout of its flagship newspaper. Everything from local television stations here in Houston, Texas to a hospice company are all still owned by Washington Post Co., with little in common except their parent company.
While this may seem rare, situations like this occur all the time for companies that acquire other companies over a long period of time. Once a buyout takes away the flagship business, management teams must scramble to come up with some kind of common ground that the remaining businesses share. For the management team for Washington Post Co., they will need to figure out what ties the remaining companies together. Do they all share a common goal? Will a name change be necessary? In the end, the parent company will need to determine where they want their new company to go in order to stay successful.
While most people only think about seeking legal help during the buying and selling process, getting help from an attorney afterwards can be just as helpful. This is especially true if name changes need to be made and a new IPO needs to be offered; without legal help, businesses can run into even more problems down the road.
Source: The Bloomberg Businessweek, "What to Name What's Left of the Washington Post Company?" Ira Boudway, Aug. 7, 2013