Media General announced this morning that it would be selling its newspapers, except the Tampa Tribune, to Warren Buffet’s Berkshire Hathaway. The company will receive $142 million cash for its 63 papers and a $400 million loan that will allow the company to pay off its debt.
I would never begin to doubt Warren Buffet’s business acumen, but if I had to spend $142 million in cash, I think I would buy 83 Taco Bell franchises, which is how many of the burrito joints one could buy if they had $142 million laying around.
A stand-alone Taco Bell franchise runs between $1,200,000 and $1,700,000, although these figures do not include the land or lease costs.
Honestly though, which do you genuinely predict will still be around in five years: The local Daily Bugle News Gazette or a restaurant that offers tacos cased in Doritos shells?
My money would be on burritos.