Media General up 42% After Selling Newspapers to Berkshire Hathaway
Media General (NYSE: MEG) is trading higher on the session following the announcement that Berkshire Hathaway (NYSE: BRK.A) buys all of Media General's newspapers with the exception of the Tampa group, for $142 million in cash. Berkshire will also provide a $400 million term loan and a $45 million revolving credit line to MEG.
Marshall N. Morton, president and chief executive officer of Media General, said, "Selling our newspapers represents a monumental change for us. We're very happy that our newspapers will become part of Berkshire Hathaway's BH Media Group, a company with a strong commitment to local news leadership and community engagement. This single transaction for virtually all of our newspapers accelerates the timing of our strategy to focus on our broadcast television business and its future growth opportunities, including digital content and Mobile DTV."
Media General is currently trading at $4.45, a gain of $1.31 or 41.72%
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.