FILE - In this Nov. 21, 2011 file photo, U.S. billionaire investor Warren Buffett, chairman and CEO of Berkshire Hathaway, speaks during a news conference at the headquarters of cemented carbide tool supplier Tungaloy Corporation after inaugurating its new factory in Iwaki city, Fukushima prefecture, northern Japan. Buffett said Wednesday, Nov. 30, 2011, Berkshire Hathaway is buying the Omaha World-Herald Co. and expanding the firm's newspaper holdings despite Buffett's misgivings about the industry. (AP Photo/Shuji Kajiyama, File)
FILE - In this Nov. 21, 2011 file photo, U.S. billionaire investor Warren Buffett, chairman and CEO of Berkshire Hathaway, speaks during a news conference at the headquarters of cemented carbide tool supplier Tungaloy Corporation after inaugurating its new factory in Iwaki city, Fukushima prefecture, northern Japan. Buffett said Wednesday, Nov. 30, 2011, Berkshire Hathaway is buying the Omaha World-Herald Co. and expanding the firm's newspaper holdings despite Buffett's misgivings about the industry. (AP Photo/Shuji Kajiyama, File)
Warren Buffett, chairman of Berkshire Hathaway, speaks on the sale of the Omaha World-Herald to Berkshire Hathaway Wednesday Nov. 30, 2011 in Omaha Neb. The sale is pending approval of the World-Herald's shareholders. (AP Photo, The Omaha World-Herald, Jeff Bundy) MAGS OUT TV OUT, LOCAL TV OUT
Terry Kroeger, President and Publisher of the Omaha World-Herald Company introduces Warren Buffett Wednesday Nov. 30, 2011 in Omaha Neb. The sale is pending approval of the World-Herald's shareholders. (AP Photo, The Omaha World-Herald, Jeff Bundy) MAGS OUT TV OUT, LOCAL TV OUT
The Omaha World Herald building is seen in Omaha, Neb., Wednesday, Nov. 30, 2011. Warren Buffett's Berkshire Hathaway said Wednesday that it is buying Buffett's hometown newspaper, the Omaha World-Herald Co. and expanding the firm's newspaper holdings despite Buffett's misgivings about the industry. Terms of the deal, which must be approved by the Omaha World-Herald's employee owners and other shareholders, weren't disclosed. (AP Photo/Nati Harnik)
Warren Buffett, chairman of Berkshire Hathaway, speaks on the sale of the Omaha World-Herald to Berkshire Hathaway Wednesday Nov. 30, 2011 in Omaha Neb. The sale is pending approval of the World-Herald's shareholders. (AP Photo, The Omaha World-Herald, Jeff Bundy) MAGS OUT TV OUT, LOCAL TV OUT
OMAHA, Neb. (AP) ? Berkshire Hathaway Inc. has completed the purchase of company chairman Warren Buffett's hometown newspaper, the Omaha World-Herald.
The deal announced Nov. 30, for $150 million and the assumption of $50 million in debt, ended one of the newspaper industry's last sizable employee-ownership plans.
World-Herald spokesman Joel Long said Monday that the deal closed Friday. World-Herald shareholders ? about 275 employees and retirees and the Peter Kiewit Foundation ? approved the sale by an overwhelming vote, Long said. The amount employees received for each of their shares, which are not publicly traded, wasn't disclosed.
Under the agreement, Berkshire acquires the flagship World-Herald and daily newspapers in Kearney, Grand Island, York, North Platte and Scottsbluff in Nebraska; the Council Bluffs Nonpareil in Iowa; a number of weekly newspapers in the region; and World Marketing, a direct-mail company with operations in Omaha, Chicago, Dallas, Atlanta and Los Angeles.
Buffett, who is Berkshire's chairman and chief executive, had said he probably wouldn't increase Berkshire's newspaper holdings because of the industry's dwindling returns. Berkshire owns the Buffalo News and it has a sizable investment in the Washington Post Co.
But during a meeting with World-Herald shareholders, he said: "I wouldn't do this if I thought this was doomed to some sort of extinction."
The Omaha World-Herald Co. has about 1,600 employees, including about 650 at the flagship newspaper in Omaha. Its daily circulation is just over 135,000 and a Sunday circulation of a little over 170,000.
World-Herald CEO Terry Kroeger said when the deal was announced that the company's employee-ownership structure was restrictive and had forced the newspaper to repurchase stock from departing employees.
Buffett promised to stay out of editorial decisions at the World-Herald Co.'s newspapers. Berkshire Hathaway usually doesn't make major changes at the companies it buys. Instead, Buffett likes buying well-run companies, allowing them to continue operating in their fashion.
When the deal was announced, Buffett said the World-Herald "delivers solid profits and is one of the best-run newspapers in America."
Berkshire owns more than 80 subsidiaries, including clothing, insurance, furniture, utility, jewelry and corporate jet companies. It also has big investments in companies including Coca-Cola Co. and Wells Fargo & Co.
Associated Presszynga ipo zynga ipo joe arpaio sam hurd arrested presidential debate roddy white roddy white
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.