Thursday, May 17, 2012

Buffetting the News

NEW YORK, NY - SEPTEMBER 30:  Berkshire Hathaw...Berkshire Hathaway Chairman and CEO Warren Buffett(Image credit: Getty Images via @daylife)Richmond, Va.-based media conglomerate Media General, Inc. expects to close a deal on June 25 in which it will unload 63 newspapers to the BH Media Group, a subsidiary of Warren Buffett's Berkshire Hathaway, Inc., for a cool $142 million in cash.

In a company press release reported on Marketwatch.com, Media General said its dailies and weeklies in the southeastern U.S., except for its Florida holdings, along with Web sites and tablet and mobile apps, are part of the deal. The media outlets will be managed by World Media Enterprises, Inc., a sister company of the Omaha World Herald Co., which also is part of the BH Media Group newspaper stable.

Media General, which has concentrated on its digital and broadcast holdings in recent years, owns 18 network-affiliated television stations and their Web sites. A $400 million term loan and a $45 million revolving line of credit from Berkshire Hathaway to Media General was also finalized in a separate credit agreement, according to the press release.
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