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Buffett's firm to complete Media General deal

Monday - 6/25/2012, 1:21pm  ET

OMAHA, Neb. - Warren Buffett's company is expected to complete its acquisition of 63 Media General newspapers on Monday.

The $142 million purchase announced last month gives Berkshire Hathaway Inc. ownership of the Richmond Times-Dispatch in Virginia, the Winston-Salem Journal in North Carolina, the Morning News of Florence, S.C., and other papers.

Berkshire also lent Media General $445 million to pay off debt as part of this deal. In return, Berkshire is getting the 19.9 percent stake in Media General and a seat on the board.

Since announcing the Media General deal, Berkshire has announced plans to acquire two small Texas newspapers and disclosed owning 3 percent of Lee Enterprises stock.

Buffett has said Berkshire may continue buying small and medium-sized newspapers in strong communities because he believes they have a decent future.


(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)