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Gabelli: Looking at years, not weeks

Billionaire value investor Mario Gabelli said Tuesday he's largely ignoring the recent extreme stock market volatility, saying his investment horizon is three to five years, not six to 12 weeks.

"It takes that long to learn about a company if it's new or outside your core competency," Gabelli told CNBC's "Squawk Box." He described his approach as leveraging "compounded knowledge about selected industries."

One of his specialty industries is broadcasting, and as Gabelli was speaking Media General announced a buyout of Meredith Corp. in a cash-and-stock deal valued at about $2.4 billion.

Read MoreLeon Cooperman: Market today 'lacks common sense'

As a shareholder of Meredith, Gabelli said it's a "terrific deal for everyone," and another sign of consolidation among television broadcasters.

The combined company, to be called Meredith Media General, will have 88 TV stations in 54 markets and media brands including Better Homes and Gardens, Parents and Shape.

Gabelli predicted the next step would be a selloff of the publishing assets to Time Inc.

Meredith shareholders will receive cash and stock valued at $51.53 per share—a 12 percent premium to Friday's closing price of $45.94. Media General stockholders will own about 65 percent of the combined company, while Meredith shareholders will own approximately 35 percent.

Read MoreMedia General buying Meredith in $2.4B deal

Also in the media space, Gabelli said he likes Discovery Communications, based the U.S. company's July announcement that it's buying the rest of sports broadcaster EuroSport that it didn't already own for $534 million from French media group TF1 Group.

He said Discovery, a stock owned by Gabelli's Gamco Investors, should see earnings go straight up over the next five years. "Not right away because they have the currency and they bought EuroSport where the euro was $1.38. It's now $1.11. But they'll pull it off."

In June, Discovery agreed to pay about $1.4 billion to show the Olympics from 2018 to 2024 across Europe through Eurosport.

"I like the company. I like anything that John Malone has fingerprints on. We've made a ton of money with him," Gabelli said. Discovery was spun-off in 2005 from the Liberty empire run by billionaire founder and media titan John Malone.

Gabelli's investment company has $40 billion in assets under management.


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—AP and Reuters contributed to this report.