The tycoon Warren Bufett sells his media empire in the US

–

Warren Buffett, Magnate The US reached an agreement for the sale of its media group BH Media for $ 140 million to the company Lee Enterprises, which obtained a loan from Buffett himself for the purchase.

A statement from Lee Enterprises, which owns fifty printed and digital newspapers in 21 US states, indicates that the pact includes a loan from the firm Berkshire Hathaway, owned by Buffett, worth 576 million dollars.

The note explains that with the loan money the purchase of the means that the investor had until now will be made, and the current debt of the Lee group, which reaches 400 million dollars, will be refinanced.

The transaction includes the purchase of 30 newspapers, as well as 49 weekly with their respective web pages, in addition to 32 other printed products sold in 10 states of the country.

Warren Buffett’s empire

Lee said he has been managing BH Media publications since July 2018, and that BH Media’s revenues in 2019 were $ 373.4 million.

Its profits before interest, taxes, depreciation and amortization (Ebitda, according to its acronym in English) reached 47.4 million dollars.

After the purchase, the Lee company will own 80 media and double its audience. It also expects to increase 87% revenue and 40% Ebitda benefits.

Lee’s director, Mary Junk, positively valued the economic opportunity offered by the purchase. He reiterated his commitment to “serve the vital role of high-quality local news.”

In addition to the loan, granted at an interest of 9% and payable in 25 years, Lee will rent for 10 years the headquarters of the media to the Buffet company for 8 million dollars annually.

–