"​Warren Buffett's Berkshire Hathaway said Wednesday that it is buying the Omaha World-Herald Co. and expanding the firm's newspaper holdings despite Buffett's misgivings about the industry."

...Buffett told Berkshire shareholders two years ago that most newspapers face the possibility of unending losses because the industry has lost its essential nature.

"They were only essential to advertisers as long as they were essential to the reader, and that is changing," Buffett said.

In a statement Wednesday, Buffett suggested that the World-Herald Co. is in better shape than most newspapers.

"The World-Herald delivers solid profits and is one of the best-run newspapers in America, and we are pleased to have Terry Kroeger and his team join Berkshire Hathaway," Buffett said

Kroeger, who is the World-Herald's CEO, said this deal will help the newspaper raise needed capital. He said the company's employee-ownership structure was restrictive and forced the World-Herald to repurchase stock from departing employees.

"We have repurchased the Company about seven times since the employee ownership plan was put in place," Kroeger said."