The sale of The Washington Post could mean a turning point for its parent company and a lack of profits for new owner Jeff Bezos of Amazon.com, Brad Safalow of PAA Research said Monday.
"Where the stock is trading now is kind of where I see it on a sum-of-the-parts basis," Safalow said. "However, what we have now is kind of a seminal event in the history of the company. There were a lot of people who advocated breaking this company up into its individual components for long time, and near views on what the residual asset value could be worth, especially in this environment, could be higher than what I've laid out here as a sum-of-the-parts value."
Shares of The Washington Post Co. closed at $568.70, up 1.56 percent.
Bezos agreed to buy the newspaper business for $250 million. The sale doesn't include other Washington Post assets such as Slate magazine, TheRoot.com or Foreign Policy.
(Read more: Amazon CEO Jeff Bezos buying the Washington Post)
Safalow, who is founder and CEO of PAA Research, said that the purchase price was "$200 million higher" than its breakup value, "so, there's more value in company today than there was yesterday."
The move to sell, he added, had not been expected from Washington Post CEO Donald Graham.