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Graham reminded him it wasn’t newspaper expertise they were after, but mastery of the internet. Bezos said he would think about it. “I had to do some soul-searching….Is this something I want to get involved in?” he said . If he did decide to do it, he knew he would have to put "some heart into it and some work into it." The financials of the business weren’t promising. Bezos admitted the business was “upside-down.” As a high fixed-cost business, they were bleeding money. It wasn’t an intrinsic operational issue, but the changing landscape. “The internet was just eroding all the advantages that local newspapers had. All of them.” Instead, Bezos relied on intuition to guide him. Bezos began to think about the meaning behind the institution. Would the demise of this institution matter? “If this were a financially upside-down, salty snack food company, the answer would be no. But as soon as I started thinking about it that way, I started to realize this is an important institution….

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