Thursday, May 30, 2013

Next on the Buffett menu: The Virginian-Pilot

It might be time to dust off your resumes, folks. 

As I said in my February 1 blog, it was only a matter of time before Landmark Media Enterprises LLC, the owner of The Virginian-Pilot, sold out. 

Today, the Internet is buzzing with Warren Buffet's latest newspaper purchase, The Roanoke Times, which is owned by Landmark Media Enterprises LLC. Buffet owns World Media Enterprises, the holding company for his stable of newspapers.

If he continues his march east, he will own every major market from southwest Virginia to Tidewater, including Richmond, the Capitol, since he owns The Richmond Times-Dispatch. 

Terms of the deal weren't disclosed. Neither was the selling price.  But it is safe to assume that he got a good deal and will squeeze The Roanoke Times for the 10 percent return he expects his newspapers to generate. 

The folks at Landmark were evasive -- probably pissed off that they have to answer to some nosy journalist. 

Rusty Friddell, an executive vice president with Landmark, said company officials are having “no ongoing discussions” with potential buyers “in regard to any other Landmark assets,” a Pilotonline.com article said.

Michael Abernathy, the president of Landmark’s publishing division, said in a statement: “We are pleased that the employees of The Roanoke Times will be joining a company such as BH Media that is committed to the future of newspapers,” the article said.

So don't think that if Buffet buys The Pilot, he will keep top or even middle (layer after layer) management in place (not that I want to see anyone riffed, but that's business)
  
Roanoke Times publisher Debbie Meade is retiring, Jordon reports; BH Media VP Terry Jamerson will become publisher, a Poynter article said. 

Earlier this year, Buffett bought the Greensboro News and Record for an undisclosed amount.  Last year, Buffett bought a chain of newspapers from Media General, including The Richmond Times Dispatch. 

Terry Kroeger, who heads BH Media, has subsequently struck deals to add newspapers in Texas and Oklahoma. Berkshire had seven daily newspapers in Virginia, according to the company’s annual report in March, the most of any state, according to a Bloomberg article.

“The Times is a great fit with our newspapers in Virginia,” Kroeger said in the statement. “Terry Jamerson is one of our key managers and we’re fortunate to have her take on this expanded role,”  the article said.

Buffett, who runs Berkshire with Vice Chairman Charles Munger, has said the company can generate a return of at least 10 percent on newspapers after tax by buying at the right price, even as circulation drops. His strategy is to focus on regions where there’s a sense of community, rather than in large cities with more competition among news providers, the article said.  

Published by Indie News Network LLC

 Friday, February 1, 2013

Buffet Style Media Next Up - The Pilot


3 comments:

  1. Maybe then we get some unbiased reporting from the Pilot, and I can restart my subscription.

    ReplyDelete
    Replies
    1. Hmm, unbiased reporting from the man who has publicly sworn allegiance to the Obama administration? Hmm, I suppose stranger things have happened.

      Delete
  2. For sale: the archives of the port city and the keys to shaping future narratives. Open to the highest bidder.

    ReplyDelete

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