Berkshire Hathaway’s press release service Business Wire has already been facing pressure from companies moving to Twitter and other social media to release financial information, now NASDAQ is moving to acquire competitor Marketwired LP in a move that could further erode their business.
NASDAQ says the acquisition will close in the first quarter of 2016, barring any regulatory hurdles.
No price for the acquisition has been announced, but Reuters reports that the company is valued in the range of $200 million. NASDAQ will be using both debt and cash for the acquisition.
Founded in 1983, Toronto-based Marketwired states that it provides news distribution and social communication solutions to public relations, investor relations and marketing professionals who represent companies of all sizes, from start-up to Fortune 500.
Acquired by Berkshire Hathaway in 2006, Business Wire currently has some 500 employees in 32 bureaus across the globe, and bills itself as the n the global leader in press release distribution and regulatory disclosure.
© 2016 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.