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While circulation may slip, papers only fail when there are dailiescompeting in the same town, a publication forfeits its position asthe primary source of locally important information or the marketdoesn t have a sense of identity, he said. We don t face those problems, Buffett, 81, wrote in the letterdated yesterday and posted on the website of Berkshire s OmahaWorld-Herald, which is in the Nebraska town where Buffett scompany is based. Berkshire will probably purchase more papers inthe next few years. We will favor towns and cities with a strongsense of community. Berkshire is the largest shareholder of Washington Post Co. (WPO)and purchased the World-Herald last year. Buffett said the company s newspapers won t move the needle interms of Berkshire s economic value in yesterday s letter. In the Media General deal, Berkshire also gave the Richmond-basedcompany a $400 million term loan with an interest rate of 10.5percent and received warrants for about 4.6 million Class A shares.Media General retained its television stations and said it sselling the Tampa, Florida, group separately. Media General has declined more than 90 percent since the end of2003. The company fell 3.8 percent to $3.51 at 4:04 p.m. in NewYork. Berkshire slipped 0.2 percent. The newspaper industry, suffering drops in print advertising, hasrecently embraced digital subscription plans. The New York Times Media Group began charging readers to access itsnews stories online last year, attracting about 454,000 payingsubscribers as of March. The so-called paywall is estimated tobring in $125 million next year for Times Co., according to DouglasArthur, an analyst at Evercore Partners Inc. Newspaper Paywalls Gannett Co., owner of 82 daily newspapers, said this year it wouldbegin charging readers to access news content online, except forflagship USA Today. Press+, a startup that sells online subscription technology, isused by more than 300 publications, including some owned byMediaNews Group Inc., Tribune Co., GateHouse Media Inc., McClatchyCo. and Lee Enterprises Inc. Press+, based in New York, was foundedby former Wall Street Journal publisher L. Gordon Crovitz, alongwith Steven Brill and Leo Hindery in 2010. The World-Herald and 17 of the Media General papers Berkshire isbuying also use Press+, Crovitz said in an e-mail. Buffett, a supporter of President Barack Obama and an advocate ofhigher taxes on the wealthy, said the newspapers would remainindependent in their coverage of public policy. (Source: Bloomberg) Add your comment Subscribe to RSS Feed For This Article. I am an expert from uninterrupted-power-supply.com, while we provides the quality product, such as EPS Emergency Power Supply Manufacturer , 48V DC Power Supply Manufacturer, Low Frequency Online UPS,and more.
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