S&P 500
7,401.00
+0.91%
Dow Jones
49,665.70
+0.19%
Nasdaq 100
29,241.00
+2.43%
Russell 2000
2,860.88
+0.82%
FTSE 100
10,263.70
+0.48%
Nikkei 225
63,767.70
+2.68%

Media

Buffett and Berkshire Hathaway Go Deeper into Media General

Photo of Jon C. Ogg
By Jon C. Ogg Updated Published
Follow 24/7 Wall St. on Google
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Invalid Image
Media General Inc. (NYSE: MEG) has done well since Warren Buffett and Berkshire Hathaway Inc. (NYSE: BRK-B) (NYSE: BRK-A) invested heavily into the company by purchasing the majority of the news and communication outfits newspapers earlier this year. Now comes news that Berkshire Hathaway has exercised its warrants to purchase 4,646,220 shares of the company’s Class A common stock. After the warrants exercise, Media General has some 27,918,339 common shares outstanding and Berkshire Hathaway’s ownership now represents roughly 16.6% of the total outstanding shares.

We would make note that the exercise was a bit of a no-brainer as the exercise price for these warrants was set at $0.01 per share. These warrants were issued as part of a new credit agreement that Media General and Berkshire Hathaway completed on May 24, 2012. Under the new credit agreement, Berkshire Hathaway provided Media General with a $400 million term loan that matures in May 2020 and a $45 million revolving credit line.

So far we are seeing very little action in Media General shares as it is worth only about $146 million, according to the new number of common shares outstanding. We would note that Yahoo! Finance only lists its market cap as just over $118 million.

Shares are down about 1.4% at $5.00 against a 52-week range of $1.14 to $6.84.

JON C. OGG

Photo of Jon C. Ogg
About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

Continue Reading

Douglas A. McIntyre |

GE Raises Liquidity With Buffett & Public Offering (GE, BRK-A, GS)

General Electric Co. (NYSE: GE) is coming out swinging to halt the offensive rumors and credit concerns that have been…

Douglas A. McIntyre |

The More Focused, and More Opaque, Buffett & Berkshire Hathaway (BRK-A, BRK-B, BNI, UNP, NSC, GS, GE, TIF, HOG, WMT, COP, XOM, WFC, RSG, DOW, ETN, WBC, MCO, WLP, UNH, GSK, SNY, GCI, WPO)

This was an important week for investment guru and billionaire watchers to see which gurus were holding which stocks.  The…

Jon C. Ogg |

The 20 Most Dominant Warren Buffett and Berkshire Hathaway Investments

Now that the market has pulled back, and with investors looking for key value stocks, 24/7 Wall St. has decided…

Jon C. Ogg |

Warren Buffett Tries To Save The Newspaper Business

It is no secret that the newspaper business has not been a good sector over the last decade.  Subscriptions declined…

Jon C. Ogg |

Warren Buffett Likely Owns More DaVita, GE, IBM, Suncor, and Wells Fargo

ThinkstockThis is the week that we will get to see 13-D and 13-F filings from investment firms, and one notable…

Berkshire Hathaway Jumps Into Occidental-Chevron Battle to Acquire Anadarko, With Caveats
Jon C. Ogg |

Berkshire Hathaway Jumps Into Occidental-Chevron Battle to Acquire Anadarko, With Caveats

The fight between Occidental Petroleum and Chevron to acquire Anadarko Petroleum just took a serious turn. Warren Buffett is now…

Jon C. Ogg |

Secondary Offerings Come On Strong From Housing & REITs (ARR, BZH, MTH, SNH)

When the market is stable or when shares are strong, many companies choose to unload shares to raise capital. It…

Jon C. Ogg |

Buffett Rides to BofA’s Rescue With $5 Billion (BAC, BRK-A, GE, GS, WFC)

Bank of America Corporation (NYSE: BAC) has just scored its saving grace.  Berkshire Hathaway Inc. (NYSE: BRK-A) is investing $5…

Douglas A. McIntyre |

Secondary Offering Floodgates Open (BGS, CMFO, COIN, LOPE, LGCY, OPEN, PRKR, KGS, UDR, IACI)

What happens when market rallies go on and on?  Outside of the basics, you just about always get a flurry…

Top Gaining Stocks

Akamai
AKAM • Vol: 21,556,944
Micron Technology
MU • Vol: 65,135,624
Intel
INTC • Vol: 227,504,426
Monster Beverage
MNST • Vol: 15,284,847
Dell Technologies
DELL • Vol: 12,167,525

Top Losing Stocks

Mettler Toledo International
MTD • Vol: 539,266
Motorola Solutions
MSI • Vol: 3,101,643
Expedia
EXPE • Vol: 4,189,786
Coterra Energy
CTRA • Vol: 73,319,495
Fidelity National Information Services
FIS • Vol: 11,468,820