"It profits me but little that a vigilant authority always protects the tranquillity of my pleasures and constantly averts all dangers from my path, without my care or concern, if this same authority is the absolute master of my liberty and my life."

--Alexis de Tocqueville, Democracy in America

Tuesday, August 6, 2013

Drudge v. WaPo

Jeff Bezos of Amazon just bought the Washington Post for $250 million.

Meanwhile, a conservative estimate last year of the value of the website The Drudge Report had it worth up to $375 million.

Your essay question for today, class, is... compare and contrast!  


Oh, and by the way, no one thinks Bezos is getting a deal on the Post.   Nearly everyone who's looked at it thinks he made a vanity purchase and grossly overpaid for the newspaper as a going concern, because, as a going concern, newspapers are going, going, gone!

On the other hand, I don't think Matt Drudge would sell his website for $375 million.   He gets a billion page-views a month!  I think he's pretty confident that it will continue to grow and generate growing revenues.   With little to no overhead, no pension plans for employees, no threat of strikes, etc.!   As my dad would say... such a deal!


Now, for extra credit, compare and contrast, say, your average overpriced liberal arts college with the Kahn Academy online.  

Same principle, different industry.   The demise of the newspaper industry is only farther along in the process.   University education's demise is coming like a freight train.

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