Media General has struck an agreement with Berkshire
Hathaway to purchase nearly all of its newspapers and new financing.
BH Media Group, a subsidiary of Berkshire,
will purchase all of Media General's newspapers -- with the exception of the Tampa
group -- for $142 million. The newspapers include 63 daily and weekly titles in Virginia,
North Carolina, South
Carolina and Alabama,
in addition to digital assets, including websites and mobile and tablet
applications.
Media General said it is in discussions for other buyers for
the Tampa group.
"These
newspapers are great institutions and powerful brands in their respective
markets," said Terry Kroeger, president of BH Media Group. "We are
honored to have the opportunity to work with our new colleagues as we continue
to produce top-notch news and advertising products in both print and digital
platforms."
Marshall
N. Morton, president and CEO of Media General, added, "Selling our newspapers
represents a monumental change for us. We're very happy that our
newspapers will become part of Berkshire Hathaway's BH Media Group, a company
with a strong commitment to local news leadership and community
engagement. This single transaction for virtually all of our newspapers
accelerates the timing of our strategy to focus on our broadcast television
business and its future growth opportunities, including digital content and mobile DTV."
This
move accelerates Media General's shift of its business model to its broadcast
and digital entities.
