Warren Buffett just got out of the newspaper business

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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.

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 also owns but is separate from BH Media Group, was also sold to Lee.

A changing industryBuffett, Berkshire's chairman and CEO, said he believes"Lee is best positioned to manage through the industry's challenges." In 2018, ad revenue for newspapers fell 13% and US newspaper circulation hit its lowest level since 1940, according to Pew Research Center."I am confident that our newspapers will be in the right hands going forward and I also am pleased to be deepening our long-term relationship with Lee," Buffett said in the statement.

 

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