Buffett On Local TV: This Is Not A Growth Business

Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B)’s Chairman and CEO Warren Buffett was recently on Bloomberg Markets discussing several issues with Bloomberg Television's David Westin. After going into the 2016 presidential race and the Chinese economy, the investor looked into the media segment as Media General merges with Meredith Corporation.

According to the hedge fund manager, Berkshire owns slightly less than 5 percent of Media General now, as its stake “got diluted down when they made an earlier merger.” The firm now owns less than $75 million of the stock.

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Media General, which seemed to be leaving the print space and moving into the broadcast arena, is now going back with Meredith, “which has 17 affiliated stations, but they have more magazines,” Westin noted.

“My guess is that it's the TV the primary motivation, but I don't know,” Buffett added. “I have never talked to anybody in Media General. And we made that deal with them. And I have never had a conversation with anybody at Media General.”

Other Stakes In TV

The Oracle of Omaha continued to look into some of his other positions in the TV segment. “We own a station in Miami, and we own WPLG, and [are] doing very well,” he stated.

However, he went on, local TV is not a growth business, although it is amazing to him “how well it's sort of hung on.”

“The world has really changed in the media and communications world. I love newspapers, but that doesn't mean I think they're going to do better – well, financially,” he concluded.