Buffett, who already owns a big chunk of Capital Cities Communications (Washington Post, chiefly) and a newspaper in Buffalo, NY and is on the Board of Directors of the World-Herald, will pay about $150 million for the largest employee-owned newspaper in America and absorb its $50 million in debt. The World-Herald, specifically, is the 49th biggest US newspaper and in the top ten in readership in its market.
The 275 employees and retirees who own World-Herald stock will vote on the Berkshire-Hathaway acquisition four days before Christmas.
The property includes The Grand Island Independent as well as daily newspapers in Kearney, York, North Platte and Scottsbluff Nebraska; the Council Bluffs, Iowa, Nonpareil; and World Marketing, a direct mail company with operations in Omaha, Chicago, Dallas, Atlanta and Los Angeles.
Buffett, known for buying distressed companies on very favorable terms, said: "It's not a crazy price. It certainly is not a bargain price. I was willing to pay more than I would have for some papers I don't feel have as good of a future."
Buffett addressed employee owners of the World-Herald at a surprise appearance during a company meeting Wednesday at the Holland Center for Performing Arts in Omaha.
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