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Posts Tagged ‘Omaha Sun’

I spent 10 years at the Omaha World-Herald, so I was interested and surprised at today’s news that Warren Buffett is buying the newspaper company.

Buffett’s company, Berkshire Hathaway, is going to pay $150 million in cash and take on $50 million of World-Herald debt, taking ownership of my former newspaper and several other Midwestern newspapers and a direct-mail company. This ends more than 30 years of ownership by employees and the Peter Kiewit Foundation.

I may have greater insight later than I do today, but here are some initial observations:

  • This doesn’t say anything about Buffett’s optimism, or lack of optimism, for newspapers. As Jim Romenesko noted today, just two years ago, Buffett told his shareholders: “for most newspapers in the United States, we would not buy them at any price” because “they have the possibility of going to just unending losses.” Buffett is worth $39 billion, according to Forbes. This purchase cost about half of 1 percent of his net worth. He’s using the change he found in his sofa cushions to buy his hometown paper, a newspaper he has long expressed affection for. He also owns two other iconic Omaha businesses: Borsheim’s Jewelry and Nebraska Furniture Mart. As the Washington Post’s Steven Pearlstein told Romenesko: “It’s an emotional, personal buy.” (more…)

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