The legendary investor says that the social media company’s IPO was either set at the wrong price, or mismanaged. It closed yesterday at $30.81, well below the $38 offering price in May. But Buffett, speaking to Bloomberg TV from the Allen & Co confab in Sun Valley, also criticizes investors who expected Facebook shares to pop. “That’s a terrible reason to buy a stock,” he says. He’s warming up to tech stocks, but prefers businesses he knows. Years from now “more people will be drinking Coca-Cola… or chewing Wrigley Gum. I know that.”
Does Warren Buffett know something about the newspaper business that the rest of the world doesn’t? Whatever the case, Media General shares are rocketing nearly 58% in pre-market trading this morning after the legendary investor agreed to pay $142M for 63 of its daily and weekly newspapers — the whole portfolio except for the Tampa properties that include The Tampa Tribune. A unit of Buffett’s Bershire Hathaway is providing financing for Media General, which is also a major owner of television stations. The deal is a “monumental change” that will enable Media General to “focus on our broadcast television business and its future growth opportunities, including digital content and Mobile DTV,” says CEO Marshall Morton.
Related: Warren Buffett Adds To Viacom Stake
Warren Buffett gave Viacom a modest vote of confidence, raising his total stake in the company to around 1.59 million shares, valued at $75.5 million as of March 31, when the quarter ended, according to an SEC …
Robinson will set up a new London office for the company which was formed late last year as a joint venture between Andy Heyward’s A Squared Entertainment and Tata Elxsi, the technology arm of Indian conglom the Tata group. A2E2 will be in Cannes for MipTV next month notably touting a new series of Warren Buffett’s Secret Millionaires Club in which the Oracle of Omaha teaches kids about business with guest stars like Jay-Z, Shaquille O’Neal and Serena Williams. The group’s motto is that it’s dedicated to creating “content with a purpose.” See the full release: