Warren Buffett's Berkshire Hathaway buys Media General newspaper group
Warren Buffett's Berkshire Hathaway buys Media General newspaper group
Media company owns 63 local newspapers across south-east US and is Buffett's second print news purchase in a year
Dominic Rushe in New York
guardian.co.uk, Thursday 17 May 2012 11.29 EDT
Warren Buffett, the world's most famous investor, has made a big bet on small newspapers.
The billionaire investor has bought Media General, owner of 63 local US newspapers covering markets across Alabama, North Carolina, South
Carolina and Virginia.
Buffet's BH Media, part of his Berkshire Hathaway investment company, paid $142m in cash for the titles. Under a separate credit agreement, Berkshire Hathaway will provide Media General with a $400m loan and a $45m revolving credit line.
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.
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http://www.guardian.co.uk/media/2012/may/17/warren-buffett-buys-media-general