Warren Buffet and his Newspaper Investments
The case may be used in the latter part of a core course on strategy, or in advanced or elective courses on strategy which deal with business models, or in courses on mergers and acquisitions. There is data in the case for students to do some modeling using spreadsheets to experiment with and evaluate alternative strategies and business models, especially in the context of the acquisition of Lee Enterprises. The context is especially challenging given the difficulties faced recently by so many newspapers, suggesting this is a problem for the industry as a whole and not just a problem for a single newspaper company. Through discussion of this case, students may be expected to expand their understanding of industry structure analysis and business model analysis, and also to examine in detail the financial implications of alternative strategies and business models using spreadsheets. This case demonstrates well the implications of specific strategies for the financials of a company.