Berkshire Hathaway to Acquire OmahaWorld-Herald Company
FOR IMMEDIATE RELEASE November 30, 2011
Omaha, NE –
Berkshire Hathaway Inc. Chairman and CEO Warren Buffett and Terry Kroeger, CEO of
the Omaha World-Herald Company, owner of The World-Herald, six other daily newspapers
and several weekly newspapers across Nebraska and Southwest Iowa announced that Berkshire
will acquire the Omaha World-Herald Company. The transaction is expected to close in late
December, pending approval of the Omaha World-Herald’s shareholders, comprised of active
employees, retired employees and the Peter Kiewit Foundation and is also subject to customary
other closing conditions, including regulatory approvals.
“The World-Herald delivers solid profits and is one of the best-run newspapers in
America, and we are pleased to have Terry Kroeger and his team join Berkshire Hathaway,” said
Warren Buffett, Berkshire’s chief executive officer. “We are also delighted to report that the
editorial independence that Nebraskans and Iowans have come to expect from the World-
Herald will continue.”
In addition to the Omaha World-Herald, the purchase includes daily newspapers in
Council Bluffs, Ia., Grand Island, York, Kearney, North Platte and Scottsbluff in Nebraska, in
addition to many weeklies and shoppers in the two states. The Company also owns World
Marketing, Inc., a direct marketing firm with operations in Omaha, Chicago, Atlanta, Dallas and
Los Angeles.
Buffett added that the purchase is consistent with Peter Kiewit’s vision for local
ownership of the Omaha World-Herald, which led to Mr. Kiewit’s purchase of the newspaper in
1962 from the Hitchcock Family.
“Warren Buffett’s offer to purchase our Company presented a unique opportunity to
address our long-term capital needs and continue local ownership of the Omaha World-Herald,
which is consistent with the legacy left to us by Mr. Kiewit,” said Terry Kroeger, the World-
Herald’s CEO.
Kroeger explained that the Company’s employee-ownership structure was restrictive
and limited the ability to raise capital from non-employees, in addition to the ongoing need to
repurchase stock from exiting employees. “We have repurchased the Company about seven
times since the employee ownership plan was put in place,” Kroeger said.
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1 comment:
Nespeppers are now outdated very outdated.
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