Buffett and Graham put deal on paper

|By:, SA News Editor

About a month ago, Berkshire Hathaway (BRK.A, BRK.B) and Graham Holdings (GHC -0.4%) reached agreement in principal for Berkshire to acquire some cash and a Graham subsidiary which includes WPLG - a Miami-based TV station - in exchange for about 1.6M shares of Graham common stock owned by Berkshire.

Besides the acquisition of a local media outlet which The Oracle is fond of, the transaction looks like it allows Buffett to cash out of a highly profitable investment in Graham without paying any capital gains tax.