Originally posted on Gigaom:
The Oracle of Omaha acquired his hometown newspaper in January and just snapped up dozens more in a $142 million deal. This is supposed to be the fastest declining industry in America. What is Warren Buffett up to?
Here’s why the deal makes a lot more sense than it appears:
A “three corner pool shot”
This week’s deal makes Buffett’s company, Berkshire Hathaway, the proud owner of the Richmond Times-Dispatch and 62 other daily and weekly papers in Virginia and the South. Most of the titles, like The Goochland Gazette and The Bland County Messenger, have small circulations in the range of 5,000 – 25,000.
The Oracle himself explained the deal this way:
“In towns and cities where there is a strong sense of community, there is no more important institution than the local paper. The many locales served by the newspapers we are acquiring fall firmly in this…
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