Berkshire Purchases Capital Cities

by admin on September 10, 2014, no comments

Purchases 20 million shares of Capital Cities at a cost basis of $345 million. As reported in Berkshire Hathaway Annual report in 1996, “On January 4, 1996, shareholders of Capital Cities/ABC, Inc. … and The Walt Disney Company … approved an agreement and plan of merger by and between Disney and Capital Cities. In March 1996, Berkshire received about 21 million shares of Disney common stock and $1.2 billion in cash in exchange for the common shares of Capital Cities.” Berkshire Hathaway exited the position in a transaction valued at around $2.2 billion.