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Lee Enterprises Inc. is joining BH Media Group Inc. as part of an agreement for Lee to manage Berkshire Hathaway's newspaper and digital businesses in 30 markets, starting July 2nd.
The deal gives Lee the flexibility to implement revenue initiatives and operational transformation consistent with the way he manages his own press and digital businesses in 49 markets, while Berkshire Hathaway retains ownership of BH Media.
Warren Buffett, President and CEO of Berkshire Hathaway, said, "I love our newspapers and I am passionate about the vital role they play in our communities. Although the challenges of publishing are clear, I believe we can benefit by joining forces.
"Lee Enterprises' market share and revenue growth has exceeded that of the industry.Ling has also led the industry in innovation and performance, while realizing faithfully the public trust as an indispensable source of local information, publicity and advertising.
"Our missions and objectives are exactly the same, our markets are similar and we both have excellent managers," said Buffett.
"We've known Lee Enterprises for years as a neighbor and industrial partner," said Mike Reilly, former editor of The World-Herald and vice president of news for BH Media Group. "I hope we can learn more from Lee on our common challenges in order to provide excellent journalism, advertising and customer service for both print and digital readers."
Mary Junck, Chief Executive Officer, Lee Enterprises, said, "Berkshire Hathaway has been a significant investor in our capital structures for years, including the $ 94 million refinancing of our Pulitzer Notes, which we bought back in 2015 with two years. d & # 39; advance. 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."
In addition to the World-Herald, the Berkshire dailies are Eagle Dothan and Opelika-Auburn News in Alabama; the Daily Nonpareil at Council Bluffs, Iowa; the Grand Island Independent, the Scottsbluff Star-Herald, the North Platte Telegraph, the Kearney Hub and the York News-Times in Nebraska; The press of Atlantic City, New Jersey; Winston-Salem Newspaper, Greensboro News & Record, Morganton News Herald, The McDowell News, Statesville Record and Landmark, and Hickory Daily Record in North Carolina; Tulsa World, Oklahoma; the Florence Morning News in South Carolina; the eagle at Bryan-College Station and the Waco Tribune-Herald in Texas; and in Virginia, the Richmond Times-Dispatch, the Daily Progress in Charlottesville, the Roanoke Times, the Bristol Herald Courier, the Lynchburg News & Advance, the Martinsville Bulletin, the Danville Register & Bee, the Free Lance-Star in Fredericksburg, the Star-Exhibitor Culpeper, and the Virginian News at Waynesboro.
Lee has daily newspapers and nearly 300 weekly and specialty publications in markets including St. Louis, Missouri; Madison, Wisconsin; Billings, Montana; Bloomington, Illinois; and Tucson, Arizona.
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