Berkshire Hathaway Makes a Big Bet on Old Media
E.W. Scripps (NASDAQ: SSP) announced today it will purchase ION Media for $2.65 billion, in a deal that's being backed by Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). The acquisition will require regulatory approval and Scripps plans to divest 23 ION stations in order to comply with ownership restrictions in various markets.
Scripps said the purchase would be immediately accretive to revenue growth, margins, and cash flow, and is expected to generate $500 million in synergies over the coming six years. The combination will create a powerhouse of network, cable, and multiplatform media.
Warren Buffett. Image source: The Motley Fool.
Source Fool.com
