BH Media Group, a subsidiary of Berkshire Hathaway, will buy all of the newspapers owned by Media General, with the exception of the Tampa group, for $142 million in cash, according to Media General, which also said it is in discussions with other prospective buyers for its Tampa print assets.

It is the second major newspaper purchase in the past six months for the “Oracle of Omaha.” In late November 2011, Buffett bought his hometown newspaper, the Omaha World-Herald and a handful of small dailies, for $200 million. At that time, Buffett was quoted by that newspaper in its own story about its sale as saying: “I think newspapers . . . have a decent future. It won’t be like the past. But there are still a lot of things newspapers can do better than any other media. They not only can be sustained, but are important.’’

The newspapers being purchased by BH Media Group include 63 daily and weekly titles in Virginia, North Carolina, South Carolina and Alabama, in addition to digital assets, including websites and mobile and tablet applications. The newspapers also have a substantial commercial printing business.

The Media General newspapers will be part of BH Media Group, along with the Omaha World-Herald Company newspapers.

“In towns and cities where there is a strong sense of community, there is no more important institution than the local paper,” said Buffett in a press release about the deal. “The many locales served by the newspapers we are acquiring fall firmly in this mold and we are delighted they have found a permanent home with Berkshire Hathaway.”
Under a separate credit agreement, Berkshire Hathaway will provide Media General with a $400 million term loan and a $45 million revolving credit line. The new loan will be used to fully repay the company’s existing bank debt due March 2013 and will mature in May 2020.
Media General said the newspaper transaction is expected to close on 25 June.