Warren Buffett’s Berkshire Hathaway Inc. will expand its media holdings by acquiring the Omaha World-Herald Co., publisher of the billionaire’s hometown newspaper.
Terms weren’t disclosed for the deal, which would give Berkshire control of the World-Herald, six other daily newspapers and several weekly newspapers across Nebraska and Southwest Iowa, according to a company statement today. Sellers include employee shareholders and the Peter Kiewit Foundation.
Buffett is putting aside doubts about the industry after telling shareholders in 2009 that many newspapers have “potential for unending losses” and that he wouldn’t buy most of them “at any price.” Publishers have lost revenue as readers shift to other media including the Internet.
“The World-Herald delivers solid profits and is one of the best-run newspapers in America,” Buffett said in the statement.
Berkshire is the biggest shareholder of the Washington Post Co. (WPO) and the owner of the Buffalo News of New York. Buffett, the 81-year-old chief executive officer, is drawing down Berkshire’s cash and investing in equities and takeovers after fixed-income yields fell this year.
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