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.