Buffett Buys Newspapers, Bucks Dying Media Trend
Posted on May 17, 2012
The billionaire investor paid $142 million and offered hundreds of millions more in loans and credit to buy Media General, the owner of 63 local U.S. newspapers covering the American South. —ARK
The move is just the latest foray into print from Buffett. Last year Berkshire bought the Omaha World Herald Company, owner of Buffett’s local newspaper and six other local titles. At Berkshire’s recent annual shareholder meeting Buffett said he was considering other local newspaper acquisitions. “We may buy more newspapers. I think the economics will be ok, but it will be nothing like the old days,” he told the meeting.
Announcing his latest purchase Buffett said: “In towns and cities where there is a strong sense of community, there is no more important institution than the local paper. The many locales served by the newspapers we are acquiring fall firmly in this mold, and we are delighted they have found a permanent home with Berkshire Hathaway.”
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Warren Buffett was a newspaper delivery boy during his youth.