Warren Buffett bought the Omaha World-Herald on Wednesday, November 30, 2011. The deal is supposed to close in December, pending the approval from company shareholders. The Omaha World-Herald is owned 80 percent by its employees and 20 percent by Peter Kiewit Foundation. The World Herald also owns several papers throughout Iowa and Nebraska.
Even though the terms of the agreement in the acquisition have not been disclosed, Berkshire Hathaway and Warren Buffett have announced they would like to expand the newspaper company’s holdings.
Warren Buffett, Berkshire Hathaway, has already expressed his opinion about the unending losses in the newspaper industry two years ago, but still went against his opinion and invested in the Omaha World Herald. The Omaha World Herald is one of the last major employee owned newspapers around and is the 49th biggest paper in the country. According to the Audit Bureau of Circulation, the Omaha World-Herald has a weekday circulation average of 135,282.
“They were only essential to advertisers as long as they were essential to the reader, and that is changing. The World-Herald delivers solid profits and is one of the best-run newspapers in America, and we are pleased to have Terry Kroeger and his team join Berkshire Hathaway,” Warren Buffett said.
Berkshire owns more than 80 subsidiaries, including clothing, insurance, furniture, utility, jewelry and corporate jet companies. Berkshire also has big investments in companies including Coca-Cola Co. and Wells Fargo & Co. The Wall Street Journal Online reported, “Mr. Buffett, one of the world’s richest people, has built Berkshire over four decades into a conglomerate with more than 70 discrete units, including Dairy Queen, Fruit of the Loom and car insurer Geico Corp. Berkshire owns a railroad and a trucking company; operates power plants and gas pipelines; sells farm supplies and furniture; and manufactures machine parts and mobile homes.”
- Buffett’s Berkshire Hathaway buys Omaha newspaper group (usatoday.com)
- Buffett’s Berkshire buying Omaha newspaper company (washingtontimes.com)