With Jeff Bezos Blessings, Washington Post Weighs Divesting Tech Business
- Washington Post is reportedly looking for strategic alternatives for its software business dubbed Arc XP.
- As per the top executives, the tech business needed to explore a spinoff or sale to realize its potential.
- The Post has embraced digital experimentation under Jeff Bezos, who acquired the company in 2013, creating an advertising-technology business and launching new apps and analytics tools.
- Arc has some 250 staff.
- The Post expects Arc to generate over $200 million in annual recurring revenue by 2027, a roughly fourfold increase over its current contribution, according to a document reviewed by The Wall Street Journal.
- The business isn’t profitable so far.
- The newspaper is expected to generate around $600 million in revenue in 2022 and has over 2.5 million subscribers, down from three million in January 2021, the WSJ report writes. The company isn’t expecting to make a profit this year.
- Last year, the Post received takeover interest for Arc, including from a special-purpose acquisition company.
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