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Lee Enterprises, the parent company of St. Louis Post-Dispatch, announced Tuesday that it had reached an agreement to manage Berkshire Hathaway's newspapers and digital operations in 30 markets.
In a press release, Davenport, based in Iowa, said the agreement, which will begin July 2, gives it "the flexibility to implement revenue initiatives and a consistent operational transformation with its daily activities in 49 markets, while Berkshire Hathaway continues as owner of BH Media. "
Shares of Lee Enterprises have jumped in the media, up nearly 40% before market opening, and are expected to hit a new 52-week high.
Lee executives scheduled a teleconference and audio webcast today at 11:00 am CDT to discuss the announcement. The live webcast will be available at http://tinyurl.com/Leecall
In addition to 30 dailies and digital transactions, BH Media Group includes 47 weekly payrolls with websites and 32 other print products. The newspapers concerned by the agreement are:
Alabama: Dothan Eagle, Opelika-Auburn News
Iowa: The Daily Nonpareil in Council Bluffs
Nebraska: Omaha World-Herald, The Great Independent Islander, Scottsbluff Star-Herald, The North Platte Telegraph, Kearney Hub, York News-Times
New Jersey: The Atlantic City Press
North Carolina: Winston-Salem Newspaper, Greensboro News & Record, The News Herald in Morganton, The McDowell News, Statesville Record and Landmark, Hickory Daily Record
Caroline from the south: Florence Morning News
Texas: The eagle in Bryan-College Station, Waco Tribune-Herald.
Virginia: Richmond Times-Dispatch, The Daily Progress in Charlottesville, The Roanoke Times, Bristol Herald Courier, Lynchburg News and Advances, Martinsville Bulletin, Danville Register & Bee, The Free Star Lance at Fredericksburg, Culpeper Star-Exhibitor, The Virginian News in Waynesboro.
The deal excludes the management of BH Media's television assets, as well as Berkshire Hathaway's separate newspaper, The Buffalo News, Lee said.
Warren E. Buffett, president and CEO of Berkshire Hathaway, said in a statement: "I love our newspapers and I am passionate about the vital role they play in our communities." publication is clear, I believe we can benefit by joining forces Lee Enterprises' market share and revenue growth has surpassed the industry's. "Lee has also led the industry in the industry. Innovation and overall performance, while faithfully achieving public trust as an indispensable source for local news, information and advertising.Our missions and our objectives correspond exactly, our markets are similar and we we both have excellent managers, working together will strengthen both of us, and Lee makes sense to lead the process. "
Mary Junck, Chief Executive Officer, Lee Enterprises, said, "Berkshire Hathaway has been a significant investor in our capital structures for years, including refinancing $ 94 million worth of Pulitzer notes we bought back in 2015, two years ago. later. of the schedule. Our relationship has been positive for both and has become a basis for us to come together in this agreement. "
She added, "This attractive strategic alliance for Lee allows us to generate more cash flow, accelerate the reduction of our debt, improve our leadership in the industry and improve our business. improve our skills by introducing our digital and print strategies at BH Media. Warren Buffett and Berkshire Hathaway are among the most admired icons in history. While the publishing industry is in transition, we remain optimistic about our future as many print opportunities remain and audiences and digital revenues continue to grow and prosper. "
Kevin D. Mowbray, Lee's President and Chief Executive Officer, stated that the Management Agreement has an initial term of five years and Lee will receive an annual fixed compensation of $ 5 million plus a significant percentage of the profits over benchmarks. He said the operational framework gives Lee wide leeway, while strategic decisions will be decided jointly. He noted that BH Media will maintain editorial control, in line with Lee's policy of local editorial decision-making.
"In addition to the key benefit of deploying Lee's successful strategies at BH Media, this alliance provides a significant expansion of the operating scale, adding 30 markets to our own 49," he said. . "Together, we will have new opportunities at all levels, especially in digital sales, advertising customer relationships, shared services and contracts with suppliers and suppliers."
This story will be updated.
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