Warren Buffet to buy 63 newspapers from Media General

Billionaire investor Warren Buffet yesterday agreed to buy 63 newspapers from Media General, for $142 million, adding more newspapers to his portfolio that includes a large stake in Washington Post Co.

Two years ago, Buffett, a former newspaper delivery boy, told Berkshire Hathaway shareholders that most US newspapers could face unending losses and that he would not think of buying most of them.

Although most analysts do not see long-term value of the print media, Buffett has now reversed his opinion and has defended newspapers, saying that they will have a decent future if they continue delivering information that cannot be found elsewhere.

"In towns and cities where there is a strong sense of community, there is no more important institution than the local paper," Buffett said in a statement. "The many locales served by the newspapers we are acquiring fall firmly in this mould and we are delighted they have found a permanent home with Berkshire Hathaway."

Buffet's investment arm Berkshire Hathaway Inc will buy 63 newspapers from Media General including the Winston-Salem Journal, Eden News, The Reidsville Review and the Danville (Va.) Register & Bee.

The deal does not include the Tampa Tribune of Florida and smaller newspapers in that market, which Media General is already in talks to sell to other buyers.