Berkshire Hathaway and Graham Holdings Swap Shares for Miami TV Station

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Buffett’s Berkshire Hathaway swaps shares in the former Washington Post Company, for a Miami TV station and other assets.   According an SEC filing on March 11, 2014, and a statement posted on Berkshire Hathaway‘s website, Buffett’s firm reached a non-binding agreement in principle for Berkshire to acquire a wholly-owned subsidiary of Graham Holdings Co [GHC] (formerly the Washington Post Co).  The transaction includes Miami TV station (WPLG), Berkshire shares held by Graham Holdings and cash, in exchange for approximately 1.6 million Class B shares of Graham Holdings common stock owned by Berkshire. The specific number of shares and cash to be exchanged in the deal is to be determined based on market prices of the shares at closing.

“I am sure this is a mutually beneficial transaction for both companies,” said Warren E. Buffett, chairman and chief executive officer of Berkshire Hathaway. “While this transaction will greatly reduce our position in Graham Holdings, our admiration for the company and its management is undiminished.” 

“Warren Buffett’s 40-year association with our company has been extremely good for our shareholders. Naturally, the deal that we have put together is one that will be good for both companies,” said Donald E. Graham, chairman and chief executive officer of Graham Holdings Company. “We thank our longtime colleagues at WPLG for their enormous contributions and congratulate them on the opportunity to join one of the greatest companies in America.”

SEC Filing:
http://www.sec.gov/Archives/edgar/data/104889/000119312514094955/d692131dsc13da.htm

Statement / Press Release:
http://www.berkshirehathaway.com/news/MAR1214.pdf

Author: The Investment Blogger

I’m a private investor, who developed the “function-centric investing” paradigm. I am an investor who blogs a little here and there, rather than a blogger who invests a little here and there. I'm passionate about investing and sharing investment knowledge!

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