Warren Buffett Buy 63 Local Media
Action was carried out by buying shares of Media General has 63 local media in the U.S.
One of the world’s richest man, Warren Buffett, staged acquisitions continued this year, now, the man nicknamed the Oracle of Omaha is buying media companies owner of 63 local newspapers the United States, Media General.
Media General is a shareholder of a newspaper circulating in the area such as Alabama, North Carolina, South Carolina and Virginia.
As quoted from page guardian.co.uk, Friday, May 18, 2012, Buffett’s acquisition step is performed by a subsidiary of Berkshire Hathaway, BH Media. No less than U.S. $ 142 million (Rp1, 27 trillion) in cash delivered in the transaction.
In addition to cash, Buffett is also going to provide a loan of U.S. $ 400 million to Media General and U.S. $ 45 million in revolving credit. The funds are channeled through a separate credit agreement of this acquisition.
Buffett steps into the print media acquisition adds to a long record of U.S. billionaire who made it. Late last year, Buffett has bought a print media company, Omaha World Herald Company, which is the local media in the Omaha and the owner of six other local media.
At a general meeting of Berkshire Hathaway’s annual shareholders some time ago, Buffett really had revealed plans to acquire other local media.
“We probably will buy more print media. I think the economy will be fine,” he said.
Buffett also said the steps to invest in newspaper business conducted with careful consideration at a price that makes sense. “They have to show the opportunities for a company that not only losers,” he said.
Buffett is not the only billionaire in the world who entered the media business. One of the world’s richest man, Carlos Slim, also known to be a major shareholder of the New York Times.
Earlier this year, the son of a large mine owners Lang Hancock, Gina Rinehart, is also a shareholder of the Australian media company, Fairfax Media. This company is a shareholder of The Age, Sydney Morning Herald and other media in Australia.