By Dow Jones Business News,
February 12, 2014, 06:23:00 PM EDT
By John Kell
Berkshire Hathaway Inc. is in talks with Graham Holding Co. to exchange its stake in the former Washington Post
owner for assets.
Berkshire said in a filing with the Securities and Exchange Commission that the two companies haven't agreed on any
terms of such a transaction, which would be structured as a tax-free split-off, and added they may not even reach an
Berkshire doesn't expect any transaction to occur unless there is "substantial economic benefits to both parties."
The assets to be involved have yet to be determined, but may involve the exchange of Berkshire common stock held by
Graham, according to the filing.
Graham sold the Post last year to Amazon.com founder Jeff Bezos for $250 million, but still holds interests in
education--including the for-profit education unit Kaplan Higher Education--and television as well as its real estate
and a few journalism properties.
In a separate statement, Graham said it was "made aware" of the filing by Berkshire regarding the potential split-
off, and confirmed the parties are in discussions but haven't yet reached an agreement.
Graham and Berkshire have a long history, as Berkshire owner Warren Buffett had a friendship with former Post
publisher Katharine Graham and spent many years serving on the Post's board. He gave up his director's seat for a second
and final time in 2011.
Berkshire Hathaway controls about 28% of Graham's outstanding shares, according to the SEC filing.
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