UPDATE: Berkshire Hathaway Will Purchase WPLG-TV from Graham Holdings

Graham Holdings Company (NYSE: GHC) and Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B) announced today that they have reached an agreement in principle forBerkshire to acquire a wholly-owned subsidiary of Graham Holdings Company,which will include WPLG, a Miami-based television station, a number ofBerkshire shares currently held by Graham Holdings Company and an amount ofcash, in exchange for approximately 1.6 million shares of Graham HoldingsClass B common stock currently owned by Berkshire Hathaway. The specificnumber of shares of each company and the amount of cash will be determined onthe closing date based on certain factors, including the market prices of theshares of both companies at that time. No binding agreement has yet beensigned in connection with the transaction. The transaction is subject toagreement on definitive documentation, and will be subject to regulatoryapprovals and other customary conditions. In addition there will be certaintermination rights relating to minimum trading prices of the stock of eachcompany immediately prior to closing and to a minimum value of the televisionstation for purposes of the transaction on the closing date.“I am sure this is a mutually beneficial transaction for both companies,” saidWarren E. Buffett, chairman and chief executive officer of Berkshire Hathaway.“While this transaction will greatly reduce our position in Graham Holdings,our admiration for the company and its management is undiminished.”“Warren Buffett's 40-year association with our company has been extremely goodfor our shareholders. Naturally, the deal that we have put together is onethat will be good for both companies,” said Donald E. Graham, chairman andchief executive officer of Graham Holdings Company. “We thank our longtimecolleagues at WPLG for their enormous contributions and congratulate them onthe opportunity to join one of the greatest companies in America.”