Berkshire Hathaway – led by chairman and CEO Warren Buffett – is purchasing The Roanoke, Virginia Times and adding it to its growing catalog of small and medium-sized newspapers.
On Thursday, May 30, Berkshire Hathaway announced that it plans to acquire The Times from parent company Landmark Media Enterprises. This is going to be this 30th daily newspaper purchased by Berkshire.
The financial terms of the agreement have not been disclosed. The company tells us that The Roanoke Times currently has a daily circulation of 76,000 subscribers. Their Sunday circulation consists of 90,000 subscribers.
At the annual meeting earlier this month, Buffett told Berkshire shareholders that the newspapers should earn a nice return of about 10%. He feels this is possible because he’s buying the newspapers at such a low cost.
But he also mentioned that he believes the earnings of the newspapers will continue to decline, and that the newspapers are not going to make a major difference in Berkshire Hathaway profits overall since they are quite small compared to the rest of the conglomerate.