OMAHA, Neb. & SAN FRANCISCO--(BUSINESS WIRE via COLLEGIATE PRESSWIRE)--Jan. 17, 2006--Berkshire Hathaway (NYSE: BRK.A and BRK.B) announced today a definitive agreement to acquire Business Wire, a privately held company that is a leading global distributor of corporate news, multimedia and regulatory filings. Terms of the transaction were not disclosed.
Business Wire will operate as a wholly owned subsidiary of Berkshire Hathaway. Business Wire`s management team will remain in place and the company`s day-to-day operations will not be affected by the ownership change. The acquisition is subject to customary closing conditions, including the termination of the applicable waiting period under the Hart-Scott-Rodino Act. The transaction is expected to close in the first quarter of 2006.
Warren Buffett, Berkshire Hathaway chairman and chief executive officer, said that Business Wire closely mirrored the profile of companies in Berkshire Hathaway`s portfolio.
''In making this acquisition of Business Wire, we have followed our blueprint of buying profitable companies that are industry leaders, yet have significant growth potential,'' said Buffett. ''A major criteria in all our investment decisions is evaluating corporate management. Business Wire`s experienced management team was key to our decision.
''We quickly realized that Business Wire was a gem of a company,'' Buffett added. ''I expect Business Wire to continue to do what it has always done and I`ll be there if I can help in any way.''
''Berkshire Hathaway is a perfect fit for Business Wire,'' said Lorry I. Lokey, who founded the company in 1961, and is the company`s chairman. ''Berkshire Hathaway is committed to providing a supportive environment that will enable Business Wire to continue to expand in overseas markets and to capitalize on emerging opportunities. We are very fortunate to become a part of one of the world`s most admired companies.''
Lokey will remain with Business Wire as chairman, but will dedicate himself to his philanthropic pursuits. Lokey has made charitable donations in excess of $160 million to educational and medical research-related projects worldwide in the past decade.
''We are extremely excited to be welcomed into the Berkshire Hathaway family,'' said Cathy Baron Tamraz, Business Wire`s president and chief executive officer. ''We are confident that the acquisition will provide myriad positive benefits for our employees, our clients and our affiliates and business partners worldwide. This is a win-win for all involved.''
Business Wire, which has expanded in Europe and Asia in recent years, is poised to take advantage of impending shifts in corporate transparency and disclosure requirements. It has set up numerous regulatory disclosure networks in Europe in preparation for the European Union`s Transparency Obligations Directive, which will take effect in January 2007. The TOD mandates harmonized, pan-European disclosure standards for publicly traded companies in all 25 Member
States.
About Berkshire Hathaway:
Berkshire Hathaway and its subsidiaries engage in a number of diverse business activities among which the most important is the property and casualty insurance business conducted on both a direct and reinsurance basis. Common stock of the Company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.
About Business Wire:
Business Wire was founded in 1961 by chairman Lorry I. Lokey, veteran journalist and public relations executive.
The company`s multi-channel delivery network, with access to some 60 international and national news agencies, financial information providers and Web-based news services throughout North America, Europe, Asia, Latin America, the Middle East and Africa, provides real-time, simultaneous access to key audiences -- the news media, trade publications, institutional and individual investors, business-to-business decision-makers and consumers.
Business Wire electronically disseminates some 1,000 full-text news releases daily to the media, the Internet, online services and databases, and the global investment community in 150 countries in 45 languages. Business Wire has 24 U.S. offices, Paris, Frankfurt, London, Brussels, Tokyo and Sydney offices, and reciprocal offices throughout the world.
MULTIMEDIA AVAILABLE:
https://www.businesswire.com/cgi-bin/mmg.cgi?eid=5057164
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