This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Media General Announces Exercise Of Warrants By Berkshire Hathaway

Stocks in this article: BRK.A BRK.B MEG

RICHMOND, Va., Sept. 25, 2012 /PRNewswire/ -- Media General, Inc. (NYSE: MEG) announced today that Berkshire Hathaway Inc. (NYSE: BRK.A and BRK.B) has exercised its warrants to purchase 4,646,220 shares of the company's Class A common stock.  The exercise price for these warrants was 1 cent per share.  The warrants were issued as part of a new credit agreement that Media General and Berkshire Hathaway completed on May 24, 2012.  Following Berkshire Hathaway's warrants exercise, Media General has 27,918,339 common shares outstanding, and Berkshire Hathaway's ownership represents 16.6% of the total.  The shares issued are exempt from registration with the Securities and Exchange Commission because the transaction did not involve a public offering.

"Media General is pleased that Berkshire Hathaway has increased its overall investment in the company by exercising its warrants for the company's common stock," said Marshall N. Morton, president and chief executive officer.  "This equity position enhances the partnership that began earlier this year when Berkshire Hathaway refinanced our bank debt.  The new credit agreement addressed Media General's long-term capital needs and provided the company with significant financial and operating flexibility.  We look forward to a long and constructive association with Berkshire Hathaway," said Mr. Morton.

Under the new credit agreement, Berkshire Hathaway provided Media General with a $400 million term loan that matures in May 2020 and a $45 million revolving credit line.  Berkshire Hathaway also purchased the majority of Media General's newspapers on June 25, 2012.

About Media General

Media General is a leading provider of news, information and entertainment across 18 network-affiliated broadcast television stations and their associated digital media and mobile platforms.  The company's stations serve consumers and advertisers in strong local markets, primarily in the Southeastern United States. Media General's network affiliates include eight NBC stations, eight CBS stations, one ABC station and one CW station.  Six of the company's stations operate in the Top 40 markets in the United States.  Media General's stations reach more than one-third of TV households in the Southeast and more than 8 percent of U.S. TV households.  Media General entered the television business in 1955 when it launched WFLA-TV in Tampa, Florida, as an NBC affiliate.  Today, WFLA is the company's largest TV station, operating in the 14th largest DMA in the United States.  Media General continues to own The Tampa Tribune and its associated print properties and expects to enter into a transaction with one of several prospective buyers for the group.

Contact Us

Additional information about Media General is available on its web site www.mediageneral.com or by contacting Lou Anne J. Nabhan, Vice President-Corporate Communications, at (804) 649-6103 or lnabhan@mediageneral.com.                               

 

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs