Media General Shares Soar After Warren Buffett Agrees To Buy Its Newspapers

Media General Warren BuffettDoes Warren Buffett know something about the newspaper business that the rest of the world doesn’t? Whatever the case, Media General shares are rocketing nearly 58% in pre-market trading this morning after the legendary investor agreed to pay $142M for 63 of its daily and weekly newspapers — the whole portfolio except for the Tampa properties that include The Tampa Tribune. A unit of Buffett’s Bershire Hathaway is providing financing for Media General, which is also a major owner of television stations. The deal is a “monumental change” that will enable Media General to “focus on our broadcast television business and its future growth opportunities, including digital content and Mobile DTV,” says CEO Marshall Morton.

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