Buffett's Berkshire Exercises Warrants

Warren Buffett’s firm is buying, thought its target isn’t much of a surprise.

Buffett’s Berkshire Hathaway has exercised the warrants it obtained back in May on Media General Inc. shares, according to Bloomberg.¬†Berkshire is acquiring 4.65 million shares of Media General’s common stock for 1 cent a share, and now owns about 17% of Media General’s outstanding shares.

Buffett and Berkshire secured the warrants back in May, in a deal in which Berkshire gave Media General a $400 million term loan with an interest rate of 10.5%, and paid $142 million for the Richmond Times-Dispatch and other Media General newspapers, Bloomberg states.