Berkshire Hathaway bets big on The New York Times with $350M stake
Berkshire Hathaway has acquired a 3% stake in The New York Times Co., purchasing nearly 5.1 million shares worth over $350 million. The media company's strong financial performance, including a 10.4% revenue increase in Q4, may have influenced the investment decision.
The move comes as Berkshire adjusts its portfolio, reducing its Apple holdings while expanding into media.
The New York Times reported solid growth in its latest quarterly results. Total revenue climbed 10.4% year over year to $802 million, driven by rising digital subscriptions and advertising. Adjusted earnings per share also rose by 11.2%, reaching $0.89.
Digital-only subscription revenue increased by 13.9% in Q4, while digital advertising surged 24.9%. The company now expects digital subscription revenue to grow between 14% and 17% in Q1 2026, with digital ad revenue rising at a high-teens to low-twenties rate.
Berkshire's investment likely came at a lower price, as shares have since risen over 35%. The purchase was probably made by Todd Combs or Ted Weschler, rather than Warren Buffett, who stepped down as CEO in his final quarter. The New York Times' reputation as a trusted news source, along with its push into video content, could support long-term growth.
Currently, the company's stock trades at around 35 times earnings and 28 times analysts' forecasted earnings for the next 12 months.
The New York Times continues to expand its digital revenue streams, with strong gains in subscriptions and advertising. Berkshire Hathaway's stake signals confidence in the company's future prospects, particularly as it strengthens its video offerings and maintains its position as a leading news provider.
