Blog Exposure – Berkshire Hathaway Ropes in Lee Enterprises to Manage BH Media’s Newspapers and Digital Operations in 30 Markets

LONDON, UK / ACCESSWIRE / June 28, 2018 / If you want access to our free research report on Lee Enterprises, Inc. (NYSE: LEE), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=LEE as the Company’s latest news hit the wire. On June 26, 2018, the Company announced that it has signed an agreement with BH Media Group, Inc. to manage Berkshire Hathaway Inc. (NYSE: BRK-A, BRK-B)’s newspapers and digital operations in 30 markets. The agreement is effective from July 02, 2018. BH Media is a Company owned by billionaire investor Warren Buffett’s Berkshire Hathaway. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Lee Enterprises and Berkshire Hathaway most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Highlights of the Management Agreement

Lee Enterprises has been tasked with managing Berkshire Hathaway’s newspapers and digital operations in 30 markets. BH Media’s business includes 30 daily newspapers and digital operations, 47 paid weekly newspapers with websites, and 32 other print products.

Berkshire Hathaway has agreed to pay Lee Enterprises a fixed annual fixed fee of $5 million plus a major share in profits over benchmarks. The agreement is initially for a five-year period. As per the provisions of the agreement, Lee Enterprises will have complete flexibility to make changes and introduce initiatives in Berkshire Hathaway’s newspaper and digital operations, which is in-line with how it manages its own newspaper and digital operations in 49 markets. However, BH Media will retain editorial control while strategic decisions will be taken jointly. The agreement does not change Berkshire Hathaway’s relationship with BH Media and it will continue to be owned by the parent Company.

The agreement will enable Lee Enterprises to implement its successful strategies across BH Media’s newspapers and digital operations, and allow it to increase its geographic footprint to 30 markets in addition to its existing presence in 49 markets. The agreement will also help Lee Enterprises in improving its cash flows, reducing debt, and enhance its overall market position. The agreement gives Lee Enterprises a distinct advantage when exploring opportunities in digital sales, advertising customer relationships, shared services, and negotiating contracts with vendors and suppliers.

The management of BH Media’s television assets and newspaper, The Buffalo News, which is owned by Berkshire Hathaway, will be outside the purview of the current agreement.

Management Comments

Commenting on the management agreement with Berkshire Hathaway, Mary Junck, Executive Chairman of Lee Enterprises, stated:

“This is an attractive strategic alliance for Lee, as it enables us to generate more cash flow, speed our debt reduction, enhance our industry leadership, and further advance our abilities as we introduce our digital and print strategies at BH Media properties. Also, we are honored to be trusted by Warren Buffett and Berkshire Hathaway, among the most admired business icons in history.”

Warren E. Buffett, Chairman and Chief Executive Officer (CEO) of Berkshire Hathaway, commented:

“Although the challenges in publishing are clear, I believe we can benefit by joining efforts. 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.”

The print and publishing segment has been facing challenging times recently due to changing consumer trends and preferences. The decision to rope in the services of Lee Enterprises is an attempt by BH Media to stay relevant, increase its readership, and attract advertisers for improved financial performance.

About Lee Enterprises Inc.

Davenport, Iowa-based Lee Enterprises is a leading provider of local news, information, and advertising in 49 markets in 21 states. It has 46 daily newspapers and a joint interest in two newspapers, plus a growing digital media presence and nearly 300 specialty publications. Some of the Company’s larger daily papers include the St. Louis Post-Dispatch, the Lincoln (Nebraska) Journal Star, and the Wisconsin State Journal. The Company’s newspapers have a daily circulation of 0.9 million and a Sunday circulation of 1.4 million, while its digital sites attract more than 25 million visitors monthly.

About Berkshire Hathaway Media Group

Founded in 2012, Omaha, Nebraska-based BH Media is the media and publishing arm of Berkshire Hathaway Inc. and offers news coverage and advertising solutions in the communities it serves. BH Media is the 10th largest newspaper media Company in the US, and its operations are spread across New Jersey, Virginia, North Carolina, South Carolina, Alabama, Florida, Texas, Oklahoma, Nebraska, and Iowa.

About Berkshire Hathaway Inc.

Omaha, Nebraska-based Berkshire Hathaway is the holding Company for its various subsidiaries, and is led by Warren Buffett, Chairman and CEO. Berkshire Hathaway and its subsidiaries engage in diverse business activities, including insurance and reinsurance, utilities and energy, freight rail transportation, finance, manufacturing, retailing, and services.

Stock Performance Snapshot

June 27, 2018 – At Wednesday’s closing bell, Lee Enterprises’ stock dropped 5.17%, ending the trading session at $2.75.

Volume traded for the day: 1.33 million shares, which was above the 3-month average volume of 217.22 thousand shares.

Stock performance in the last month – up 12.24%; previous three-month period – up 34.15%; past twelve-month period – up 37.50%; and year-to-date – up 17.02%

After yesterday’s close, Lee Enterprises’ market cap was at $150.07 million.

Price to Earnings (P/E) ratio was at 7.11.

The stock is part of the Services sector, categorized under the Publishing – Newspapers industry.

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