Lee Enterprises To Manage Berkshire Newspaper & Digital Operations In 30 Markets
(RTTNews.com) - 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.
Read the original article on RTTNews (http://www.rttnews.com/2908478/lee-enterprises-to-manage-berkshire-newspaper-digital-operations-in-30-markets.aspx)
For comments and feedback: contact firstname.lastname@example.org