SAN FRANCISCO—Press release distribution service Business Wire has been acquired by Warren Buffet’s Berkshire Hathaway. Business Wire is privately held and terms of the transaction were not disclosed.
Business Wire will operate as a wholly owned subsidiary of Berkshire Hathaway. Its management team will remain in place and the company’s day-to-day operations will not be affected by the ownership change. 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,” says Buffett. “A major criterion in all our investment decisions is evaluating corporate management. Business Wire’s experienced management team was key to our decision.”
“Berkshire Hathaway is a perfect fit for Business Wire,” said Lorry Lokey, who founded the company in 1961, and is its 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 philanthropic pursuits. Lokey has made charitable donations in excess of $160 million to educational and medical research-related projects worldwide in the past decade.