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Berkshire Hathaway Should Buy CBS
by Felix Salmon
May 16, 2008
May 16, 2008
Evan Newmark has a very smart take on CBS's acquisition of CNet. The main problem with CBS, he says, is that it's a profitable but slow-growth company saddled with a public listing. Since no public company CEO is happy mapping out a future of slow yet profitable growth, Les Moonves feels forced to do silly things like pay 22x Ebitda for CNet when his own company is trading on a ratio of less than 8x.
...Here is Les Moonves, "As you know, we're always looking for strategic acquisitions in higher growth businesses." And I thought, why? The business you're in is pretty good at generating cash.
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