Buffet Style Media Next Up - The Pilot

It was only a matter of time before Landmark sold out. It must have been the right price. 

The Oracle of Omaha’s purchase of the Greensboro News and Record from Landmark Media Enterprises may have many in the newspaper business rejoicing or undergoing the typical sturm und drang to which journalists are prone, especially the ones who came of age in the 60s and 70s.

But Warren Buffet, who seems like this kindly old gentleman driven to save the newspaper industry, isn’t buying newspapers.

He’s buying markets.

Buffet’s purchase of the North Carolina daily, which is owned by Landmark Media, also owner of the Virginian-Pilot, means he will control a large chunk of ad dollars and news in the Triad of North Carolina.

When his company, Berkshire Hathaway, bought a large majority of Media General’s newspapers last year, Buffet gained ownership of the Winston-Salem Journal, Eden News, The Reidsville Review and the Danville, Virginia, Register & Bee.

Buffet has said repeatedly that newspapers should gravitate more to online news and start charging for it.

Some in the newspaper industry see Buffet as a savior. They believe he believes newspapers are a necessary ingredient of democracy. They believe he is a counterweight to the corporate titans that have controlled, bled and wasted the talents and skills of newspaper professionals.

Buffet’s purchase indicates to me that perhaps The Virginian-Pilot, always considered the flagship newspaper in the Batten Empire, the owners behind Landmark Enterprise, isn’t as valuable as the owners want to believe it is.

It also indicates to me that Landmark is asking too much for The Pilot, or else Buffet would have bought The Pilot initially.

But as I said Buffet is buying markets. He isn’t buying newspapers.

Don’t let Mr. Buffet fool you.

He bought newspaper chains when they were bleeding and were desperate to sell at pennies on the dollar.

He saw an opportunity to buy markets. In doing so, he has created the mechanism to control advertising and editorial pricing.

Don’t be naïve or sentimental about Buffet.

This is about controlling media outlets and thus pricing.

Buffet isn’t an altruist. He’s a corporate titan with the face of your grandfather. 
But he isn’t your grandfather and he isn’t in business to save your job.

In fact, Mr. Buffet has already begun to trim newspapers he bought from Media General.

Buffet is also buying communities. 

Buffet is building an empire. Buffet is replacing the mismanaged newspaper chains with his own brand and his own style of control. 

 But it’s not just Buffet, the wise face of finance. It’s Berkshire Hathaway Inc., his company, a multi-national conglomerate whose stock is traded on the New York Stock Exchange.

Forget it. You can’t afford the $145,250 per share price tag. By contrast, Google's stock is priced at $755.69.

Buffet has some very, very wealthy investors, and they want results. Big results.

Big changes.

Can the newspaper profession cope with another round of capital cost cutting?

Do we, the public and the profession, really want a Buffet Style media landscape?

Is Buffet any different from the Caligula-like and obviously repugnant Rupert Murdoch?

Is this what we, the public and the profession, really want?