MEG), he got more than the newspapers. Buffett loaned Media General millions, at a 10.5% interest rate, and took a 20% ownership stake in the company via penny warrants. Simply put, he got a sweet deal. In typical Buffett fashion, he wins even if he loses. Maybe his bet on small-town newspapers will end up flat or fizzle, but he still managed to effectively loan shark Media General. Here's a company bleeding cash and losing money (about $3.68 per share) looking to transform itself. It has about $12 million in cash and more than $658 million in debt. Buffett takes dying newspapers off of Media General's hands as it embarks on efforts to step into the digital century. Good luck. Keep an eye on Lee Enterprises ( LEE), and not because you should buy the stock. It's in a situation that's pretty similar to Media General. It loses money, but has even more debt - close to $1 billion worth.