Magazine article Variety

Buffett: Yahoo's White Knight?

Magazine article Variety

Buffett: Yahoo's White Knight?

Article excerpt

Warren Buffett doesn't have much love for tech companies - It's an investment sector his sprawling $210 billion Berkshire Hathaway empire has generally avoided.

But the Oracle of Omaha could play a role in the future of Yahoo, which is scoping out potential buyers: Buffett last week confirmed he would provide financing for a bid by Dan Gilbert for the faltering internet company. Gilbert, the billionaire founder of Quicken Loans, also owns the Cleveland Cavaliers.

That same day. Berkshire Hathaway revealed that it owns 9.81 million shares of Apple, worth $1 billion as of March 31. The news pushed shares of the tech company up 3.7% on May 16.

However, none of this means Buffett has changed his tune on technology. Analysts point out that the Apple investment was led by one of Berkshire Hathaway's portfolio managers - not by Buffett himself. And Buffett characterized his offer to back a Yahoo takeover as a vote of confidence in his buddy Gilbert.

"I'm an enormous admirer of Dan and what he has accomplished in Quicken Loans," Buffett said in a statement to CNBC. (He could not be reached for comment for this story.) "Yahoo is not the type of thing I'd ever be an equity partner in. …

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