Berkshire Hathaway to Invest in E.W. Scripps – ValueWalk Premium
Berkshire Hathaway Warren Buffett

Berkshire Hathaway to Invest in E.W. Scripps

In an E.W. Scripps press release yesterday, it was revealed that Berkshire Hathaway was planning to assist in the company’s $2.65 billion acquisition of ION Media:

Q2 2020 hedge fund letters, conferences and more

Berkshire Hathaway Warren Buffett

Berkshire Hathaway investment highlights

  • Amount of preferred stock: $600 million
  • Dividends: 8% per year if paid in cash; 9% if deferred
  • Redemption: The preferred stock will have no maturity date but will be redeemable starting five years after issuance.
  • Warrant: Berkshire Hathaway to receive a warrant to purchase up to 23.1 million Scripps Class A shares at $13 per share. Berkshire may exercise the warrant at any time but no later than one year after all preferred stock has been redeemed.
  • Other considerations: While the preferred stock is outstanding, Scripps cannot issue a dividend or repurchase shares.
  • Governance: Berkshire Hathaway will not receive any board seats and will have no other governance rights.

Article by Dr. David Kass


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