Buffet to buy World Herald

Candleshoe · Post

***NEWS FLASH!!!***

Buffett to buy The World-Herald

http://www.omaha.com/article/20111130/N ... -lt-big-gt

Omaha World-Herald wrote:The Berkshire Hathaway company has agreed to purchase The Omaha World-Herald Co. from its employee shareholders and the Peter Kiewit Foundation.

The transaction is expected to close in late December, pending approval of The World-Herald's shareholders, made up of active employees, retired employees and the Peter Kiewit Foundation. The purchase also is subject to customary closing conditions, including regulatory approvals

S33 · Post

He's gone senile.

almighty_tuna · Post

That's one way to get past the premium content blocker.

Stargazer · Post

Hopefully this means we can look forward to a more liberal slant.

joeglow · Post

Stargazer wrote:Hopefully this means we can look forward to a more liberal slant.

We need more liberal newspapers.

Stargazer · Post

Actually we do... television broadcast media is pretty well covered, but newspapers need more liberal bias... certainly in this part of the country. Need to be more reflective of that readership here which gave President Obama our one electoral college vote.

S33 · Post

Actually, we need an end to the bias, not more of a certain kind. If the media would actually report on the news, instead of flooding their broadcasts with "correspondents" and "analysts", most of whom are from some kind of political "institute" with an agenda driven opinion, then the average person could start forming unbiased opinions and realize just how |expletive| up our lousy government is.

For the topic, this purchase really leaves me wondering what buffet sees in that newspaper. Besides the online content, the paper is an antiquated piece of media, which has been declining not because of quality, but demand, because of the internet age, and I don't see the method behind the madness on this one.(maybe that's why I'm not a world-famous investor)

Ben · Post

A couple of thoughts on this Berkshire purchase:

- more of a bailout than a purchase. It sounds like this may have been the easiest way for the paper to get a cash infusion and still keep ownership local (like the Kiewitt Foundation intended when it made its purchase).
-Buffett is old school and still wants a paper in his hands. As is the case with the readership of many of the smaller papers that the OWH owns. Its not like this is the Washington Post we're talking about here...
-the Direct Mail business that the OWH owns might be the one worth something. Imagine the tie-ins possible with other BH direct to consumer companies like Geico.
-Omaha "old boys network" influence - look at some of the names involved here - Gottschalk, Kiewitt, etc. He may have been asked for a favor, and this is an extremely small scale investment as BH goes.

EDIT: Ironic choice of big newspapers to choose above, as I just realized that BH owns a nice chunk of the Washiington Post, and Buffett was a longtime boardmember.

Big E · Post

Buy a failing business (OWH) in a failing industry (print news) to acquire another business in a soon to be obsolete industry (direct mail)?

jessep28 · Post

It sounds like if the deal is approved it will be business as usual. Although, I'd like to see some better reporting, less syndication content and maybe another website redesign. But I'm sure more than 50% of their online readers still use IE 6, so that might be a far fetched dream.

Linkin5 · Post

I wonder if he would be interested in my carrier pigeon conglomerate.

Stargazer · Post

Aside from a dilution of ad revenue across the web in general, perhaps putting pressure on their profits... I guess I don't understand why ANY city papers web presence isn't still the preferred source of news at the local level. I assume they still hold the largest resource in terms of news gathering man power. If I were these businesses, I guess I'd be pushing along the subscription service a little more, squeezing free content. I know I for one, will reasonable fee similar to that of a print newspaper subscription for access to timely online news content.

So I guess I don't understand why the newspaper business... beyond print media... would be considered to be in decline.

Post

jessep28 wrote:But I'm sure more than 50% of their online readers still use IE 6, so that might be a far fetched dream.

Funny, my site always use to be IE, but I just looked for the first time in a couple years and its has really changed...

Most popular browser among site visitors: Safari/535.2 (32.91%)

Garrett · Post

jessep28 wrote: But I'm sure more than 50% of their online readers still use IE 6, so that might be a far fetched dream.

Big E · Post

Wow, that's amazing. That has to be including iPhones?

We're showing a huge shift towards mobile, particularly iPads, as well. Full ecommerce upgrade in process because of it, as a matter of fact. Still 62% IE, though.

joeglow · Post

jessep28 wrote:It sounds like if the deal is approved it will be business as usual. Although, I'd like to see some better reporting, less syndication content and maybe another website redesign. But I'm sure more than 50% of their online readers still use IE 6, so that might be a far fetched dream.

That is a staple of Berkshire acquisitions. Typically, their business run as if nothing happened. The handful who actually work for Berkshire (as opposed to one of the subsidiaries) then handle consolidating everything for the 10-K and income tax returns.

Bob from Omaha · Post

He's owned the Buffalo News for decades. I wouldn't count on much. He's been milking that rag forever. Rarely parts with a nickel until it's past time, i.e. presses, labor costs, pretty much anything that doesn't turn a profit. He's in it for the cash & nothing else matters. He said a long time ago that owning a monopoly newspaper is like owning a toll bridge that is the only way out of town. You can raise advertising rates at will. His words not mine.

If you expect anything more than the bare minimum in content, you will be disappointed.

joeglow · Post

Bob from Omaha wrote:If you expect anything more than the bare minimum in content, you will be disappointed.

So, you are saying the paper will improve quite a bit?

Coyote · Post

+1 Chuck Norris'

Omababe · Post

Big E wrote:Buy a failing business (OWH) in a failing industry (print news)

Interesting in how long the print newspaper has been said to be obsolete.

Over the recent holiday we were watching a nostalgic re-run of Lassie, where the child-protagonist was trying to sell newspaper subscriptions. Think of this in the context of 1950s rural America where television had yet to come. Upon approaching one farmer about a subscription, the farmer replied that he gets all of his news by radio now, so he has no need for a newspaper.

The newspaper has been "dead" for some time now, huh?

Big E · Post

Omababe wrote:The newspaper has been "dead" for some time now, huh?

Obviously there's going to be a niche market for it for some time to come, just as there is still a niche market for America Online and VHS rentals. You can essentially make any businesses model "work" as long as you aren't overly concerned about profits, growth, or future viability.

If you were forced to pick one industry to hitch your long term financial health wagon onto, would it be print?

GetUrban · Post

Someone needs to get Warren an ipad....and get him to use it. Maybe then the OWH would make a successful transition from "print" media to cyber. They've been promising an Ipad app for over two years now.

I still read the printed version of the paper, but would prefer to read a facsimile on my ipad so I don't have to mess with recycling.

I think they're going to have to do away with paid subscriptions to survive...unless they can really offer readers something they can't get elsewhere for free. More in-depth local reporting would help.

S33 · Post

I think David Sokol told him something.

ricko · Post

GetUrban wrote:Someone needs to get Warren an ipad....and get him to use it. Maybe then the OWH would make a successful transition from "print" media to cyber. They've been promising an Ipad app for over two years now.

I still read the printed version of the paper, but would prefer to read a facsimile on my ipad so I don't have to mess with recycling.

I think they're going to have to do away with paid subscriptions to survive...unless they can really offer readers something they can't get elsewhere for free. More in-depth local reporting would help.

Until on-line advertising generates as much $ as print ad sales, there's no way a newspaper can make it without charging for content. The New York Times now charges for its on-line news. Real news (not the endless supply of news commentary blogs) is generated by reporters leaving their offices, asking the tough questions and doing the research for a story-----good news costs money. We'll see what happens.

GetUrban · Post

ricko wrote:
GetUrban wrote:Someone needs to get Warren an ipad....and get him to use it. Maybe then the OWH would make a successful transition from "print" media to cyber. They've been promising an Ipad app for over two years now.

I still read the printed version of the paper, but would prefer to read a facsimile on my ipad so I don't have to mess with recycling.

I think they're going to have to do away with paid subscriptions to survive...unless they can really offer readers something they can't get elsewhere for free. More in-depth local reporting would help.
Until on-line advertising generates as much $ as print ad sales, there's no way a newspaper can make it without charging for content. The New York Times now charges for its on-line news. Real news (not the endless supply of news commentary blogs) is generated by reporters leaving their offices, asking the tough questions and doing the research for a story-----good news costs money. We'll see what happens.

Google and Facebook are worth billions now.....without charging consumers. There must be a lesson there somewhere. I guess news is only worth so much. Now everybody seems to only want news with their particular political spin on it....or so the providers think.

icejammer · Post

GetUrban wrote:Now everybody seems to only want news with their particular political spin on it....or so the providers think.

I think the marketplace has borne that out to be true in a lot of instances.

GetUrban · Post

I was wrong in my earlier post....the OWH does now have an iPad app. Much improved, and it let's you see the actual print version on your screen if you're a subscriber. It would be cool if they could add hyperlinks within the stories and adds....maybe that will happen eventually.

Post

Buffett expands his newspaper empire according to the OWH

http://www.omaha.com/article/20120517/NEWS01/120519629

By Steve Jordon OWH

Warren Buffett made good Thursday on his promise to buy more newspapers, agreeing to buy 63 daily and weekly newspapers in the Southeast for $142 million from financially troubled Media General Inc. of Richmond, Va.

The newspapers, in Virginia, North Carolina, South Carolina, Alabama and Florida, would be combined with the Omaha World-Herald Co. into a new Berkshire Hathaway Inc. division called BH Media Group. They would be managed by World Media Enterprises, a new sister company of The World-Herald.............................

Read the rest at the link

Big E · Post

This makes the OWH purchase make a little more sense.

All he needs now is a few cable stations and he can take on Rupert Murdoch.

Omababe · Post

Big E wrote:This makes the OWH purchase make a little more sense.

Far be it from me to question Warren B's investment wisdom, but I would think that in this day and age, traditional print news media would be an incredibly poor choice!

Unless, of course, the price was a Could Not Refuse type of thing.

OldGeorge · Post

Omababe wrote:
Big E wrote:This makes the OWH purchase make a little more sense.
Far be it from me to question Warren B's investment wisdom, but I would think that in this day and age, traditional print news media would be an incredibly poor choice!

Unless, of course, the price was a Could Not Refuse type of thing.

Today's money in newspapers is to be made via online advertising revenue. I read 4-5 news papers - online - every day. I do not subscribe to any of them in print form. I am one of millions of Americans who do that very thing. We are no longer the customer who is buying a newspaper. We are the product, and advertisers are buying access to us through online sources. It may not make sense at first, but it's true.

jessep28 · Post

They've been predicting the demise of the paper newspaper for years. Obviously more people including me consume news online nowadays, but I don't see the newspaper completely going away.

OldGeorge · Post

jessep28 wrote:They've been predicting the demise of the paper newspaper for years. Obviously more people including me consume news online nowadays, but I don't see the newspaper completely going away.

Exactly. NewsPAPER is now an inaccurate name. NewsSOURCE would probably be a little better. But it's the same industry.

bigredmed · Post

Omababe wrote:
Big E wrote:This makes the OWH purchase make a little more sense.
Far be it from me to question Warren B's investment wisdom, but I would think that in this day and age, traditional print news media would be an incredibly poor choice!

Unless, of course, the price was a Could Not Refuse type of thing.

OK, BRK is a conglomerate built around the constant generation of capital to allow for more acquisitions and to use as a competitive advantage in the profitable areas of reinsurance and super catastrophic reinsurance. Newspapers dont make much money in large cities where cost is always, where the higher cost factors at all levels squeeze income. Newspapers that are in cities like Omaha, have better profit margins and have steady cash flows.

The steady cash flow into BRK allows BRK to cover their super cat.risk with operating income and investments with less dependence on the market. This leaves them at a competitive advantage over their competitors as they have millions of dollars pouring in to pay claims and are less exposed to the frequent plunges in the market post-disaster. They can cover the same loss risk with lower premiums.

Look for more low profile cash pumping industry purchases in the future.

OldGeorge · Post

VERY INTERESTING...

I now see that the ONLINE version of the World Herald is going to start charging viewers.

I'm getting a pop-up that covers the monitor, saying something to the effect of, "You've enjoyed your 20 free viewings during the past 30 days. In order to continue enjoying the World Herald, you must become an All-Access Member." The "low introductory rate" is just 99 cents.

Well, Warren, my decision is a very simple one to make. UP YOURS. I simply will not bother reading the World Herald website. Thank you, and good night.

almighty_tuna · Post

It's been doing that for a while now. It will shake out somehow or another.

OldGeorge · Post

almighty_tuna wrote:It's been doing that for a while now. It will shake out somehow or another.

Advertising revenue will drop as online viewers drop. The World Herald better figure things out. You can charge an extra $50 per month for advertising IF you have an increasing viewer base. But if that base is declining, advertisers will not spend ANY money.

MadMartin8 · Post

OldGeorge wrote:VERY INTERESTING...

I now see that the ONLINE version of the World Herald is going to start charging viewers.

I'm getting a pop-up that covers the monitor, saying something to the effect of, "You've enjoyed your 20 free viewings during the past 30 days. In order to continue enjoying the World Herald, you must become an All-Access Member." The "low introductory rate" is just 99 cents.

Well, Warren, my decision is a very simple one to make. UP YOURS. I simply will not bother reading the World Herald website. Thank you, and good night.

Download AdBlock Plus. You can get around that limit.

OldGeorge · Post

MadMartin8 wrote:
OldGeorge wrote:VERY INTERESTING...

I now see that the ONLINE version of the World Herald is going to start charging viewers.

I'm getting a pop-up that covers the monitor, saying something to the effect of, "You've enjoyed your 20 free viewings during the past 30 days. In order to continue enjoying the World Herald, you must become an All-Access Member." The "low introductory rate" is just 99 cents.

Well, Warren, my decision is a very simple one to make. UP YOURS. I simply will not bother reading the World Herald website. Thank you, and good night.

Download AdBlock Plus. You can get around that limit.

Actually, I'm not interested in doing either of those things.

If the World Herald wants to block people from surfing their site for free, so be it. That's their choice. And it's my choice - as a regular consumer - to say "No."

jessep28 · Post

Private browsing mode will also do the trick.