GO
Loading...

Buffett Says Last Chapter Of Dow Jones Bid Has Not Been Written

Warren Buffett said on Sunday it is possible that the $5 billion takeover bid by Rupert Murdoch's News Corp. for Dow Jones may not be the final offer for the owner of the Wall Street Journal.

In a press conference, Buffett said newspaper companies have "A" and "B" values, with the former measuring the cash they can generate, and the latter involving factors including "power (and) ego" that can accompany purchases of specific companies. Dow Jones, he said, has a high "B" value because of the Journal's reputation and broad international reach.

"I think Rupert would even acknowledge that some part of his interest in the Wall Street Journal goes beyond economics," said Buffett, who runs Berkshire Hathaway.

"The question is, who will add the most for the B value," he added. "The B value for Dow Jones is huge. It's going to be a factor with Rupert. It's going to be a factor for any other bidder who emerges .... The last chapter has not necessarily been written on that."

News Corp. has offered $60 a share for Dow Jones. At the moment, Dow Jones's controlling shareholder, the Bancroft family, has rejected the offer.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Don't Miss

U.S. Video

  • Mad Money's Jim Cramer breaks down the theme of stealth technology stocks. Cramer says companies that are using proprietary technology to invent entirely new markets and then dominate those markets, fall under that category.

  • Mad Money host Jim Cramer knows it can be difficult to stick with a stock that is going lower but says if you've done the homework, and the story isn't wildly off the rails, then stay long.

  • Mad Money host Jim Cramer, outlines the most common emotionally driven investor mistakes and expresses why it is important to not let skepticism run away with you.