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 hedge 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

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

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!