Buffett’s Berkshire Hathaway Makes Print Play, Acquires 63 Media General Newspapers
“We are extremely pleased to enter into a new financing partnership with the highly respected Berkshire Hathaway organization. Our new credit agreement addresses Media General’s long-term capital needs and provides the company with significant financial and operating flexibility,” continued Morton.
Media General said that in recent years its model has shifted toward its broadcast and digital businesses. Broadcast television accounted for 77 percent of total platform cash flow for the full year 2011; in the first quarter of this Political year, it accounted for 87 percent. Morton said Media General is capitalizing well on this year’s event-driven revenue opportunities in broadcast.
The newspaper transaction is expected to close on June 25. A transition will take place over several months, in coordination with Media General personnel. World Media Enterprises president Douglas Hiemstra will closely oversee the transition and operations of the acquired newspapers for Berkshire Hathaway.
About Media General
Media General is a leading provider of news, information and entertainment across multiple media platforms, serving consumers and advertisers in strong local markets, primarily in the Southeastern United States. Following the sale of newspapers to Berkshire Hathaway, the company’s operations will include 18 network-affiliated television stations and their associated websites. Media General owns eight NBC affiliates, eight CBS, one ABC and one CW. Six of its stations operate in the Top 40 markets in the United States, including WFLA-TV in Tampa, Florida, the country’s 14th largest DMA. Media General’s stations reach more than one-third of TV households in the Southeast and more than 8 percent of U.S. TV households. Media General expects to enter into a transaction with one of several prospective buyers for its Tampa, Florida print properties.
Source: Media General.