Solved Case Analysis: Buffetts Bid for Media Generals Newspapers By Benjamin C. Esty and Aldo Sesia

Get the Best Analysis to this Case Study written by MBA/CFA writers.

**Order Now by just sending an email at assignment@writerkingdom.com . Send us case study file and questions which you want to get covered in case solution. Click Here to see how it works

Compare

Description

On May 12, 2012, BH Media Group, a subsidiary of Warren Buffett’s Berkshire Hathaway, announced an offer to buy Media General’s (MEG) newspaper division for $142 million in cash and provide debt financing to the struggling firm. Reactions from investors and industry analysts varied greatly: one called it a “great surprise”, another wondered if Buffett was investing with his heart rather than his head (he was a paperboy as a child), and a third said it was a “feat of financial engineering.” Virtually all of them wondered what the “Oracle of Omaha” saw in the declining U.S. newspaper industry that others did not. The question facing Media General’s CEO Marshall Morton was whether to accept the offer or not. As the head of a highly leveraged company whose revenues had fallen 31% in the past four years, whose stock price was down more than 90% off its high, and whose falling profitability left it perilously close to violating key debt covenants, he had to move quickly.

Publishing Authority:

Harvard Business Review – Harvard Business School

Reviews

There are no reviews yet.

Be the first to review “Solved Case Analysis: Buffetts Bid for Media Generals Newspapers By Benjamin C. Esty and Aldo Sesia”

Your email address will not be published. Required fields are marked *