WASHINGTON & OMAHA, Neb.--(BUSINESS WIRE)--Mar. 12, 2014--
Graham Holdings Company (NYSE: GHC) and Berkshire Hathaway Inc. (NYSE:
BRK.A; BRK.B) announced today that they have reached an agreement in
principle for Berkshire to acquire a wholly-owned subsidiary of Graham
Holdings Company, which will include WPLG, a Miami-based television
station, a number of Berkshire shares currently held by Graham Holdings
Company and an amount of cash, in exchange for approximately 1.6 million
shares of Graham Holdings Class B common stock currently owned by
Berkshire Hathaway. The specific number of shares of each company and
the amount of cash will be determined on the closing date based on
certain factors, including the market prices of the shares of both
companies at that time. No binding agreement has yet been signed in
connection with the transaction. The transaction is subject to agreement
on definitive documentation, and will be subject to regulatory approvals
and other customary conditions. In addition there will be certain
termination rights relating to minimum trading prices of the stock of
each company immediately prior to closing and to a minimum value of the
television station for purposes of the transaction on the closing date.
“I am sure this is a mutually beneficial transaction for both
companies,” said Warren 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 good for our shareholders. Naturally, the deal that we have
put together is one that will be good for both companies,” said Donald
E. Graham, chairman and chief executive officer of Graham Holdings
Company. “We thank our longtime colleagues at WPLG for their enormous
contributions and congratulate them on the opportunity to join one of
the greatest companies in America.”
About Berkshire Hathaway (www.berkshirehathaway.com):
Berkshire
Hathaway and its subsidiaries engage in diverse business activities
including property and casualty insurance and reinsurance, utilities and
energy, freight rail transportation, finance, manufacturing, retailing
and services. Berkshire’s common stock is listed on the New York Stock
Exchange, trading symbols BRK.A and BRK.B.
About Graham Holdings Company (www.ghco.com):
Graham
Holdings Company (NYSE: GHC) is a diversified education and media
company whose principal operations include educational services,
television broadcasting, cable television systems and online, print and
local TV news. The Company owns Kaplan, a leading global provider of
educational services; Post–Newsweek Stations (WDIV–Detroit,
KPRC–Houston, WPLG–Miami, WKMG–Orlando, KSAT–San Antonio,
WJXT–Jacksonville); Cable ONE, serving small-city subscribers in 19
midwestern, western and southern states; and The Slate Group (Slate,
Slate V, TheRoot, Foreign Policy). The Company also owns Trove, a
digital team focused on innovation and experimentation with emerging
technologies; SocialCode, a leading social marketing solutions company;
Celtic Healthcare; and Forney Corporation.
Source: Graham Holdings Company
Graham Holdings Company
Rima Calderon, 202-334-6617
Rima.Calderon@ghco.com
