Having last week closed a deal to buy 63 local newspapers from Media General for $142M, Warren...

This news story has 10 comments:

Register or Login to rate comments »

David Urban Comments (1034)
 
I have to really question this move.

The papers are cheap for a reason and people are losing money left and right in newspapers.
24 May 2012, 01:14 PM Reply Like

rhiannion Comments (140)
 
Control of a media outlet?
24 May 2012, 01:18 PM Reply Like

David Urban Comments (1034)
 
You can get the same information online for free and the online outlets are increasing in number outside of local papers.

If you own the only newspaper in 50+ different local towns there are very little operating synergies to squeeze out of the transaction since Warren leaves managements in place.
24 May 2012, 01:31 PM Reply Like

davidingeorgia Comments (2678)
 
It makes no sense at all unless Warren knows a newspaper "bailout" is in the works (something Dems have been making noises about doing for awhile now, since all their dead tree propaganda outlets are losing readers and money and well on their way to the dustbin of history)...he does give tons of money to politicians for a reason, being the archetypical crony capitalist that he is.
24 May 2012, 01:50 PM Reply Like

remurraymd Comments (2306)
 
A VERY BAD move similar to the china electric car fiasco papers all over the country like the Pulitzer Prize winning Times Picayune just laid off 60% and cut papers to three a week going broke. WE really think Warren and Charlie have totally lost it. (GLD) and Tech(http://bit.ly/JjWCE4) have massively outperformed them they have missed a 2 decade bull run.Buffet said on CNBC he would rather have
the shaft than the gold mine and no one questioned that statement. Truly the fairy tale of the emperor's clothing.
24 May 2012, 03:37 PM Reply Like

long_on_oil Comments (851)
 
On one hand small town newspapers editorial section can swing a lot of votes in the upcoming election but on the other hand most young people never read newspapers so the future is bleak for local newspapers.
$450 million is just a small political contribution to the democrat party and the re election of Obama.
I rarely think of selling my BRK stock but this move sure makes a strong case for it. Warren is either a fox and knows something we don't or he is in the early stage of dementia.
It could be that the property these newspapers own may be worth more than his investment.
25 May 2012, 08:54 AM Reply Like

rhiannion Comments (140)
 
Read a recent article on Mr Buffett 'Buffet keep your hands out of my pockets'; in essence, the article stated Mr Buffett did not do anything that eventually made him/his account money and cost someone else dearly.
25 May 2012, 09:59 AM Reply Like

JasonR Comments (38)
 
I can see how it could make sense from a cash management standpoint, if he's buying them as a sort of low-risk long-term bond offering 6-8% over 15+ years. The "strong sense of community" qualifier makes me think these are papers that are somewhat shielded from macro trend of declining newspaper readership. Even as young adults move to larger cities, most of their parents and grandparents remain. At the traditional retirement age ~65, they'll be reading the local paper for another 10-15 years on average, and some for another 30+ years. We all know you're not getting an 8% predictable cash flow out that far anywhere else.
25 May 2012, 10:33 AM Reply Like

rhiannion Comments (140)
 
The 'traditional' retirement age is out the window - because of retirement account losses, older generation now working to mid/late 70's. The jobs now not available to younger generation; so it's a slip-slide all the way.
25 May 2012, 10:45 AM Reply Like

JasonR Comments (38)
 
Not seeing how that affects newspaper sales.
25 May 2012, 01:58 PM Reply Like