Warren Buffett acquires hometown newspaper for $150 million
01 Dec 2011
Though Warren Buffett, chairman and CEO of Berkshire Hathaway, buys his hometown newspaper every day, yesterday instead of buying a single copy, the US billionaire investor went on to buy the whole company for a reported $150 million.
The Oracle of Omaha bought the World-Herald Co, publisher of the Buffett's hometown newspaper The Omaha World-Herald, making him the seventh publisher in the 126-year history of the newspaper.
The Omaha World-Herald said the sale price was $150 million plus assumption of $50 million debt. The deal gives Berkshire control of the publisher of six other daily newspapers and several weekly newspapers across Nebraska and southwest Iowa.
The acquisition will add to Berkshire's investments in other US newspapers like the Buffalo (NY) News and Washington Post Co.
The purchase comes despite Buffett having told Berkshire Hathaway shareholders two years back that most US newspapers could face unending losses and that he would not think of buying most of them.
Employees of The World-Herald own 80 per cent of the company, while the remaining 20 per cent is held by the Peter Kiewit Foundation.