logo
Plus   Neg
Share
Email

Lee Enterprises To Manage Berkshire Newspaper & Digital Operations In 30 Markets

Lee Enterprises Inc. (LEE), has joined with BH Media Group, Inc, in an agreement for Lee to manage Berkshire Hathaway's newspaper and digital operations in 30 markets, beginning July 2, 2018. The agreement provides Lee with flexibility to implement revenue initiatives and business transformation consistent with how it manages its own newspaper and digital operations in 49 markets, while Berkshire Hathaway continues as owner of BH Media.

In the Tuesday pre-Market trade, LEE is trading at $3.30, up $0.875 or 36.08%.

Warren E. Buffett, chairman and CEO of Berkshire Hathaway, said, "...Lee Enterprises' growth in digital market share and revenue has outpaced the industry. Lee also has led the industry in overall innovation and performance, all while faithfully fulfilling its public trust as an indispensable source for local news, information and advertising. Our missions and goals match exactly, our markets are similar, and we both have excellent managers. Operating together will strengthen both of us, and Lee is logical to lead the process."

Kevin D. Mowbray, Lee president and CEO, said the management agreement has an initial term of five years and that Lee will receive an annual fixed fee of $5 million plus a significant percentage of profits over benchmarks. He said the operating framework gives Lee broad latitude to manage, while strategic decisions will be agreed upon jointly. He noted that BH Media will retain editorial control, consistent with Lee's policy of local editorial decision-making.

In addition to 30 daily newspaper and digital operations, BH Media Group includes 47 paid weekly newspapers with websites and 32 other print products, reinforcing its position as, like Lee, the primary source for local news, information and advertising.

The contract excludes management of BH Media television assets, as well as Berkshire Hathaway's separate newspaper, The Buffalo News.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Facebook on Thursday shared an update on its $100 million small-business grants program announced in March, saying that it will provide $40 million in grants to 10,000 U.S. small businesses that were impacted by the coronavirus pandemic. In March, the social media giant said it is offering $100 million in cash grants and ad credits for up to 30,000 eligible small businesses. The Walt Disney Co., which temporarily closed Disney parks and resorts and halted media operations, plans to furlough some of its employees in the United States starting April 19. Multiple reports said the furlough will affect employees whose jobs aren't necessary at this time amid the surge in coronavirus or Covid-19 pandemic. The National Retail Federation Chief Economist Jack Kleinhenz stated that while the coronavirus pandemic "has triggered shocks", the underlying U.S. economy is sound unlike during the Great Recession of 2007-2009. However, Kleinhenz noted that bringing the virus under control was crucial or else the fallout would be worse. Kleinhenz also said that retail foot traffic is "nearly nonexistent".
Follow RTT
>