Also see: "Warren Buffett & The Washington Post"
The news instantly sent the stock down sharply although it has been climbing back. Not only has Buffett, 80, been considered a linchpin of the board, Berkshire Hathaway is the company’s largest institutional shareholder with 1.7 million shares, nearly 24 percent of the shares as of Sept. 30, 2010 and his departure could signal a change. Buffett doesn’t own any shares directly.
Buffett has been a staunch supporter of newspapers—Berkshire Hathaway also owns the Buffalo News—and a firm realist at the same time. At the 2009 Berkshire Hathaway annual meeting, he said he would not give up newspapers personally but
The other members of the 11-director board include Graham, his niece Katharine Weymouth, publisher of the Washington Post; Barry Diller, chairmen of IAC; (NSDQ: IACI) and Lee Bollinger, president of Columbia. The board met today.
Warren Buffett laughs it up with late Washington Post publisher Katharine Graham
In today’s announcement, which dovetailed with an increase in the WaPo dividend, Graham and Buffett each stressed that the flow of advice doesn’t have to stop because he’s retiring from the board. That’s undoubtedly true. (I’ve confirmed that Buffett will act as an informal adviser, not a paid consultant.)
But the news unleashed an instant flood of speculation, including a suggestion that Buiffett is trying to distance himself from regulatory investigations of the company’s Kaplan division over its student loans. But Buffett isn’t leaving until May—and there’s no real way for even a former director to distance himself from decisions made during his tenure, particularly when he has been on hand for the last 15 years.