Warren Buffett is officially exiting the newspaper business, a sector that he once saw as a promising investment. Berkshire Hathaway Inc., his conglomerate, has agreed to sell its BH Media Group, which owns 30 daily newspapers, to Lee Enterprises Inc. for $140 million in cash. Lee Enterprises, which has managed the papers since 2018, will also receive a loan from Berkshire to finance the deal.
Buffett, who started his career as a teenage newspaper delivery boy, has been deeply involved in the newspaper industry for decades. However, his faith in the future of print journalism has faltered in recent years. In 2018, he acknowledged that the once-thriving industry had failed to reverse its decline, with advertising and circulation figures plummeting to historic lows. Buffett described the state of newspapers as “toast,” reflecting his frustration with the sector’s inability to adapt to the digital age and changing consumer habits.
The deal marks a significant retreat for Buffett, who had long been a staunch believer in the stability of traditional businesses. BH Media’s holdings, including the Omaha World-Herald (Buffett’s hometown paper) and Buffalo News—a publication he’s owned for over 40 years—will be included in the sale to Lee, along with 49 weekly papers and other print products. Despite the company’s ongoing struggles, Buffett emphasized his confidence in Lee Enterprises as the best-positioned entity to navigate the industry’s challenges.
The newspaper business, once dominated by local ad revenues and subscription-based models, has faced steady erosion due to the rise of digital media, social platforms, and online search engines. According to the Pew Research Center, U.S. newspaper circulation hit its lowest point in 2018, marking a stark reality for an industry in crisis.
While some newspapers, such as The New York Times, have managed to thrive through innovative digital strategies, many others are grappling with declining revenues. McClatchy Co., which owns notable papers like the Miami Herald and Charlotte Observer, is struggling with debt and pension liabilities, while The Salt Lake Tribune converted into a nonprofit last year after failing to find a sustainable business model.
Buffett’s exit from the industry is part of a broader trend in the media world. Private equity firms and hedge funds have increasingly moved in to acquire struggling publications, often with the intent of capitalizing on their steady, though shrinking, cash flows. The $1.9 billion acquisition of USA Today’s parent company Gannett by New Media Investment Group raised concerns about the future of journalism, as such firms are typically known for cost-cutting measures, including layoffs.
Despite the industry’s challenges, Buffett’s decision to sell his newspaper empire is a reminder of the monumental shifts in media consumption and advertising, which have left even the most successful investors reconsidering their bets on traditional print publications. The sale of BH Media marks Berkshire Hathaway’s second major divestiture in under a year, following the sale of an insurance business in late 2019. However, Buffett has remained committed to holding onto certain legacy businesses like Kirby Co. and World Book, which cater to more niche markets.
In a statement regarding the sale, Buffett expressed his belief that Lee Enterprises is best equipped to handle the transformation of the newspaper business, underscoring his sentiment that the era of profitable, traditional newspapers may be behind us
