Warren Buffett's Berkshire Hathaway is ditching its newspaper business.
Lee Enterprises will buy Berkshire's 31 publications across the country for $140 million in cash. Berkshire also will provide the long-term financing for Lee's existing debt.
Expected to close in mid-March, the acquisition includes BH Media Group publications, such as Buffett's hometown paper, the Omaha World-Herald. The Buffalo News, which Berkshire (BRKA) also owns but is separate from BH Media Group, was also sold to Lee
The acquisition expands Lee's roster of daily newspapers from 50 to 81 and increases the company's revenue by 87%, according to a statement from the firm. The Davenport, Iowa, company's stock rose 70% on the news.
Lee will receive $576 million in long-term financing from Berkshire at 9% interest, also using the funds to refinance $400 million in existing debt and eliminate a $23 million revolving credit facility, according to the statement. The transaction will cut the newspaper chain's debt slightly.
"This is a compelling and transformative transaction for Lee. It both refinances our long-term debt on attractive terms and provides new revenue opportunities as well as operational synergies across an expanded portfolio," said Lee Chairman Mary Junck.
Before rebounding Wednesday, Lee's stock had sunk more than 50% in the past year.
Doug Arthur, a media analyst at Greenwich, Connecticut-based equity research firm Huber Research Partners, said Berkshire's financing reassures the market since Buffett is unlikely to "pull the rug from under" Lee Enterprises.
"It's a friendly seller, it's a good price, they know the properties so they will be able to able to wring out more savings, and they'll be able to cover their financing," he said.
Re: Seguimiento de Warren Buffett - Berkshire Hathaway
Uit89
¿Se ha dicho alguna vez en que Invierte su liquidez?
#113
Re: Seguimiento de Warren Buffett - Berkshire Hathaway
Una parte es intocable dado que la mantienen para si su negocio asegurador tuviera extraordinarios importantes.
La otra que no puedan reinvertir en sus negocios internos bien a empresas cotizadas o a comprar empresas enteras para integrarlas en Berkshire.
Esto último sucede cada vez más, por el enorme volumen que tienen.pero su objetivo son empresas también muy grandes y por valoración no están viendo oportunidades.
Así que mientras no lo vean claro, mantendrán liquidez o quizás recomprar acciones propias. Saludos.
#114
Re: Seguimiento de Warren Buffett - Berkshire Hathaway
A mí lo que mas me ha sorprendido al leer el 13F de BRK es que han comprado aproximadamente 25 millones de dolares entre los ETFs SPY y VOO. Es una pequeñez comparado con otras compras que ha realizado y con respecto al tamaño de su cartera, pero es interesante que hayan comprado ETFs indexados al SP500.
He hicieron ventas importantes en PSX, TRV.
Saludos
Se habla mucho de depositar confianza, pero nadie dice qué interés te pagan
Berkshire Hathaway was built by Warren Buff ett to withstand a global economic shock like this one. With more than $120 billion of free cash available for investment, Berkshire is well positioned to deploy capital opportunistically. Pandemics are generally excluded from insurance policies, and we believe that Berkshire’s insurance operations have limited exposure to the coronavirus. Berkshire is also highly advantaged in being able to invest its insurance company capital in equities when compared with other insurers who are generally limited to fi xed income investments where there is little yield to be found. Berkshire’s privately owned portfolio of industrial and other businesses will absorb some short-term economic impact from the virus. In light of Berkshire’s extraordinarily strong fi nancial position and the nature of the portfolio companies it owns, we believe that Berkshire will not be materially negatively impacted as a result of the crisis. Rather, we believe that Berkshire will emerge from this crisis as a more valuable enterprise as the market decline will enable it to invest a substantial portion of its cash in investments which will accelerate its long-term growth in intrinsic value.
