Buffett's Berkshire bets on Atlantic City newspaper

July 18, 2013: 1:32 PM ET
warren buffett berkshire atlantic city newspaper
Buffett has said he does not believe newspaper success "will come from cutting either the news content or frequency of publication."
NEW YORK (CNNMoney)

Warren Buffett's newspaper-buying spree isn't finished yet.

The Press of Atlantic City, a New Jersey newspaper with a daily circulation of 67,000, announced Thursday that it is being sold to BH Media Group, a subsidiary of Buffett's Berkshire Hathaway (BRKA).

John Blitzer III, head of the holding company selling the paper, said in a statement that BH Media's "sterling reputation for journalistic integrity and astute business management should be welcome by the market, and by the people at The Press."

Terry Kroeger, CEO of BH Media, said the company was "delighted to have The Press of Atlantic City join our growing family of newspapers."

Terms of the deal weren't disclosed.

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Buffett has repeatedly said that newspapers are in an unavoidable decline, but that hasn't stopped him from snapping them up.

Berkshire has acquired over two dozen newspapers in the past year-and-a-half, according to its most recent annual report. BH Media now owns 30 newspapers in 10 states.

Buffett said in his annual letter to shareholders in March that he and business partner Charlie Munger "love newspapers" and "believe that papers delivering comprehensive and reliable information to tightly bound communities and having a sensible Internet strategy will remain viable for a long time."

"Berkshire's cash earnings from its papers will almost certainly trend downward over time. Even a sensible Internet strategy will not be able to prevent modest erosion," Buffett wrote. "At our cost, however, I believe these papers will meet or exceed our economic test for acquisitions."

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