By Kevin McCauley
Warren Buffett’s Berkshire Hathaway is buying its hometown newspaper, Omaha World-Herald, and its six sister dailies in Nebraska and Iowa.
The OW-H “delivers solid profits and is one of the best-run newspapers in America,” said Buffett in a statement. He said OW-H’s chief Terry Kroeger will remain in his post and promised complete editorial freedom for the papers.
OW-H Co. is owned by employees, retirees and the Peter Kiewit Foundation. The deal is expected to close by the end of the year.
Kroeger said the sale to BH provides a “unique opportunity to address long-term capital needs and continue local ownership.”
He called the employee-ownership structure “restrictive” and something that “limited the ability to raise capital from non-employees.”
The half-dozen acquired dailies are in Grand Island, York, North Platte, Kearney and Scottsbluff (Neb.) and Council Bluffs (Ia).
The deal includes shoppers and World Marketing Inc., direct marketer with outposts in Omaha, Dallas, Chicago, Atlanta and Los Angeles.
B-H has owned the Buffalo News since 1977 and has been an investor in the Washington Post Co.
It also acquired Business Wire in 2006.
|