According to media reports, Warren Buffett, Chairman and CEO
Berkshire Hathaway Inc.
) has made an announcement to buy a newspaper business named
Tulsa World is a closely held newspaper company with a daily
sale of 95,000. The deal is expected to come through by
However, in 2009, Warren Buffett stated that it was not very
reasonable to continue his ownership of any newspaper business.
At the time, he had declared his particular dislike of the
practice of newspaper companies providing news online for free,
yet charging for the same in print. According to Buffett,
online news posed a threat to the print medium.
However, Buffett had changed his outlook toward the future
of the newspaper industry when last year Berkshire Hathaway
acquired 63 daily and weekly newspapers from Media General Inc.
at approximately a 100% premium to Media General's then-market
In November 2011, Buffett announced the purchase of The
Omaha World-Herald Company, publisher of Nebraska's principal
daily newspaper, for $200 million. The deal added the
World-Herald and six other daily newspapers and several weekly
newspapers to the company's media business portfolio.
Berkshire's media business portfolio also includes Business
The Washington Post Co.
Buffett's buying of newspaper businesses suggests his
optimism towards the newspaper industry. The company's
newspaper unit consists of 28 small- or medium-sized dailies.
Besides dailies, Berkshire owns 40 other newspapers businesses
engaged in less frequent publishing along with other monthly
publications and regional magazines.
According to Buffett, a newspaper is an institution, which
is important in regions with a strong sense of community. He
also believes that newspapers, which have been facing stiff
competition from digitization, can prevent waning sales by
focusing on providing community news.
Other players in the same industry
Cincinnati Financial Corp.
State Auto Financial Corp.
), among others, are carrying Zacks Rank #1 (Buy) and are worth
BERKSHIRE HTH-A (BRK.A): Free Stock Analysis
BERKSHIRE HTH-B (BRK.B): Free Stock Analysis
CINCINNATI FINL (CINF): Free Stock Analysis
STATE AUTO FINL (STFC): Free Stock Analysis
WASHINGTON POST (WPO): Free Stock Analysis
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