Rating agency Fitch Ratings says Warren Buffett’s latest acquisition of an Omaha media company shows “a bit of sentiment” by the investment veteran.
Buffett announced the acquisition of the Omaha World-Herald, through investment company Berkshire Hathaway, for $200m last week.
Omaha is the home town of Buffett, who is often referred to as the ‘Sage of Omaha’.
A Fitch spokesperson says: “Fitch believes the World-Herald acquisition is interesting, as Buffett has been critical of the newspaper industry, pointing out that declining readership has contributed to major losses already compounded by weak advertising revenue.
“Still, the print media buy has precedent, as BRK has a $565 million [£361 million] stake in the Washington Post (amounting to less than 1% of common stock investments) and ownership of New York-based Buffalo News.”
The rating agency says although the acquisition is “non-traditional” it was not likely to signal a change in Berkshire Hathaway’s acquisition strategy.
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