Warren Buffett to Swap Stake in Graham Holdings (GHC)

Berkshire Hathaway, led by Warren Buffett, disclosed in an SEC filing that it will sell its Class B shares of Graham Holdings Co (NYSE:GHC) back to the company in exchange for WPLG (a Miami-based television station that is a subsidiary of Graham), cash and Class A and B shares of Berkshire Hathaway Inc. (NYSE:BRK.A) owned by Graham. Buffett is the largest owner of the education and media company, with a stake of 1.7 million shares as of year-end 2013, or 28% of the shares outstanding, valued at approximately $1.2 billion. The exact terms of the deal will be determined at closing.

Berkshire Hathaway

 

Berkshire Hathaway previously disclosed in a filing that it intends to acquire an unformed subsidiary of Graham Holdings, which could own some assets and a business of Graham.

Other fund managers with large holdings of Graham Holdings Co. (NYSE:GHC) include Mason Hawkins of Southeastern Asset Management (who owns 543,200 shares), Charles de Vaulx of International Value Advisors (with 147,600 shares), John Rogers of Ariel Investments (79,700 shares) and Tom Russo of Gardner Russo & Gardner (75,845 shares).

Graham Holdings Co. (NYSE:GHC) is a $5.2 billion market cap company that owns Kaplan, which provides educational services to individuals, schools and businesses, as well as various media properties in cable television systems, newspaper publishing and television broadcasting. It is also the former owner of the Washington Post, which was sold to Jeff Bezos, the founder of Amazon.com Inc. (NASDAQ:AMZN), in 2013.

Although not within his top 10 holdings, media stocks are well represented within Warren Buffett’s equity portfolio, given their high free cash flow generation and dividends. In addition to Graham Holdings Co. (NYSE:GHC), the famed value investor owns 36.5 million shares of DIREC TV (NASDAQ:DTV), 5.3 million Class A shares of Liberty Media Corp. (NASDAQ:LMCA) and 7.6 million Class B shares of Viacom Inc. (NASDAQ:VIAB).

Disclosures: none

Recommended reading:

MSD Capital Trims Its Stake in DineEquity, Inc (DIN)

Select Equity Group Raises Stake in Walter Investment Management (WAC)

Mark Stupfel’s Cortex Capital Management Is Bullish On These Stocks

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!