Lee Enterprises
{{Short description|American media company}}
{{Infobox company
| name = Lee Enterprises, Inc.
| logo = Lee Enterprises logo.png
| image = Mississippi Plaza (Davenport, Iowa).JPG
| image_caption = Lee headquarters
| type = Public
| traded_as = {{nasdaq|LEE}}
Russell Microcap Index component
| foundation = {{start date and age|1890}}
| founder = Alfred Wilson Lee
| location = Davenport, Iowa
| key_people = {{ubl|Mary Junck (chairman)|Kevin Mowbray (president & CEO)}}
| num_employees = 4,365
| num_employees_year = 2022
| industry = Media
| products = Newspapers and digital media
| revenue = {{decrease}} {{currency|611.4|us}} million
| assets = {{decrease}} {{currency|649.2|us|linked=no}} million
| assets_year = 2024
| revenue_year = 2024
| operating_income = {{decrease}} {{currency|4.55|us|linked=no}} million
| income_year = 2024
| net_income = {{decrease}} {{currency|-32.8|us|linked=no}} million
| net_income_year = 2024
| homepage = {{URL|https://lee.net/}}
| footnotes = {{cite web |url=https://www.sec.gov/Archives/edgar/data/58361/000162828023005263/lee-20220925.htm |title=LEE ENTERPRISES, INCORPORATED FORM 10-K|work=EDGAR |publisher=U.S. Securities and Exchange Commission |date=2022-09-25 |accessdate=2023-10-22 }}
}}
Lee Enterprises, Inc. is a publicly traded American media company. It publishes 72 daily newspapers in 25 states,{{Cite web|url=http://lee.net/about/|title=About|last=Enterprises|first=Lee|website=Lee Enterprises|language=en|access-date=2017-12-15}} and more than 350 weekly, classified, and specialty publications. Lee Enterprises was founded in 1890 by Alfred Wilson Lee and is based in Davenport, Iowa.{{Cite web|url=https://www.townnews365.com/about/|title=About TownNews.com|last=TownNews.com|website=TownNews.com|language=en|access-date=2017-12-15}}
The company also provides online services, including websites supporting its daily newspapers and other publications. Lee had more than 26 million unique web and mobile visitors monthly, with 229.1 million pages viewed. Lee became majority partner of TownNews.com in 1996; Town News creates software for newspaper publication purposes. The company offers commercial printing services to its customers.
Lee Enterprises is currently the fourth largest newspaper group in the United States of America. The company acquired Howard Publications (16 daily newspapers) for $694 million in 2002{{cite web |url=http://www.editorandpublisher.com/PrintArticle/Lee-Enterprises-Buys-Howard-Publications |title=Lee Enterprises Buys Howard Publications |date=February 2, 2002 |work=Editor & Publisher |access-date=7 July 2012}} and Pulitzer, Inc. (14 daily, over 100 non-daily), for $1.5 billion in 2005.{{cite web |url=https://www.nytimes.com/2005/02/01/business/media/01paper.html |title=Pulitzer to Be Acquired by Lee Enterprises |author=Steinberg, Jacques |date=February 1, 2005 |work=New York Times |access-date=7 July 2012}}
From January 2012 to April 2017, the company's executive chairman, Mary Junck, was chairman of the Associated Press.{{Cite web |url=http://www.ap.org/Content/Press-Release/2012/Mary-Junck-of-Lee-Enterprises-named-new-AP-board-chairman |title="Mary Junck of Lee Enterprises named new AP board chairman", Associated Press press release, January 26, 2012. |website=Associated Press |access-date=2015-05-06 |archive-url=https://web.archive.org/web/20150505005857/http://ap.org/Content/Press-Release/2012/Mary-Junck-of-Lee-Enterprises-named-new-AP-board-chairman |archive-date=2015-05-05 |url-status=dead }} In December 2018, Lee Enterprises announced that Mary Junck would transition from Executive Chairman to Chairman of the company.{{Cite web|url=https://lee.net/financial/mary-junck-moves-to-chairman-of-lee-enterprises/article_f6e2c4e6-fc11-11e8-903b-731f05f67d22.html|title=Mary Junck moves to chairman of Lee Enterprises|website=Lee Enterprises|language=en|access-date=2019-01-28}}
In January 2020, Lee Enterprises announced an agreement with Berkshire Hathaway to acquire BH Media Group's publications and The Buffalo News for $140 million in cash.{{Cite web|url=https://www.dailyprogress.com/lee-press-release/pdf_04b1e8f6-47bf-5038-a657-5f1936601711.html|title=Lee Press Release|website=The Daily Progress|date=29 January 2020 |language=en|access-date=2020-01-29}}{{cite web |url=https://www.bloomberg.com/amp/news/articles/2020-01-29/warren-buffett-throws-in-the-towel-on-his-newspaper-empire |url-status=dead |archive-url=https://web.archive.org/web/20200130140618/https://www.bloomberg.com/amp/news/articles/2020-01-29/warren-buffett-throws-in-the-towel-on-his-newspaper-empire |archive-date=2020-01-30 |title=Warren Buffett Says Goodbye to His Struggling Newspaper Business|website=Bloomberg News }}
In November 2021, global hedge fund Alden Global Capital made an offer to acquire Lee Enterprises for $24 per share, or about $141 million.{{Cite web |title=Sara Fischer on Twitter |url=https://twitter.com/sarafischer/status/1462800938490552323 |access-date=2021-11-22 |website=Twitter |language=en}} In response, the board of Lee Enterprises enacted a shareholder rights plan, colloquially known as a "poison pill", in order to ward off the purchase attempt.{{cite news |last1=Mullin |first1=Benjamin |title=Lee Enterprises Enacts Poison Pill to Guard Against Alden Takeover |url=https://www.wsj.com/articles/lee-enterprises-enacts-poison-pill-to-guard-against-alden-takeover-11637793121 |access-date=November 25, 2021 |publisher=Wall Street Journal |date=November 24, 2021}} Then, in early December, the board of Lee unanimously rejected the Alden bid, saying that the Alden proposal "grossly undervalues Lee and fails to recognize the strength of our business today."{{cite news |last1=Bruell |first1=Alexandra |title=Lee Enterprises Board Rejects Alden's Acquisition Offer |url=https://www.wsj.com/articles/lee-enterprises-board-rejects-aldens-acquisition-offer-11639056463 |access-date=December 11, 2021 |publisher=Wall Street Journal |date=December 9, 2021}}
In November 2021, the U.S. Department of Justice alleged two Iranian nationals had accessed the company's content management system in the fall of 2020, aiming to post false news about the presidential election.{{Cite news|last=Volz|first=Dustin|date=2021-11-19|title=WSJ News Exclusive {{!}} Iranian Hackers Broke Into Newspaper Publisher Lee Enterprises Ahead of 2020 Election|language=en-US|work=Wall Street Journal|url=https://www.wsj.com/articles/iranian-hackers-broke-into-newspaper-publisher-lee-enterprises-ahead-of-2020-election-11637359741|access-date=2021-11-24|issn=0099-9660}}
Significant events
= Sale of television subsidiary =
Lee operated a broadcasting division, which it sold in 2000 to pay off debt and in order to focus on newspaper publishing. Most of the TV stations were sold to Emmis Communications,{{Cite news|url=http://www.lee.net/newsreleases/news-2000-10-02-emmis.shtml|archive-url=https://archive.today/20130221181521/http://www.lee.net/newsreleases/news-2000-10-02-emmis.shtml|url-status=dead|archive-date=2013-02-21|title=Lee Enterprises Inc.: publishing, newspapers, online, shoppers, class…|date=2013-02-21|work=archive.is|access-date=2018-07-01}} and have all been sold, as of 2007, to other companies.
= Chapter 11 bankruptcy and bailout reorganization =
The company filed for Chapter 11 bankruptcy in 2011.[http://newsandinsight.thomsonreuters.com/Legal/News/2011/12_-_December/Newspaper_group_Lee_Enterprises_files_for_bankruptcy/ "Newspaper group Lee Enterprises files for bankruptcy"], Thomson Reuters, December 12, 2011. It emerged from bankruptcy less than two months later. In April 2012, Warren Buffett took a stake in Lee Enterprises (through Berkshire Hathaway Inc.), buying $85 million of the company's debt from Goldman Sachs Group.{{cite web |url= https://blogs.wsj.com/deals/2012/04/12/warren-buffett-building-newspaper-empire/ |title=Warren Buffett Building Newspaper Empire? - Deal Journal -|work=blogs.wsj.com |year=2012 |access-date=13 April 2012}}
In June 2012, Berkshire Hathaway filed an amended Form 13F (13F-HR/A) for the period ending March 31, 2012.[https://www.sec.gov/Archives/edgar/data/1067983/000119312512260151/0001193125-12-260151.txt "Berkshire Hathaway SEC Archives March 31, 2012 13F-HR/A amendment"] This document disclosed that Berkshire accumulated $2,119,000 or 1,655,125 common shares of Lee Enterprises, or a 3.2 percent stake.{{cite web |url=https://www.nytimes.com/2012/06/07/business/media/shares-of-lee-enterprises-surge-after-buffett-buys-stake.html |title=Shares of Lee Enterprises Surge After Buffett Buys Stake |date=June 6, 2012 |agency=Reuters |work=New York Times |access-date=7 July 2012}} The document noted that the confidentiality of this transaction was requested but denied by the SEC on May 25, 2012.{{cite web |url=https://www.bloomberg.com/news/2012-06-05/buffett-s-berkshire-discloses-stake-in-lee-enterprises.html |title=Buffett's Berkshire Discloses Stake In Lee Enterprises |date=June 5, 2012 |author=Kraut, Dan |work=Bloomberg |access-date=7 July 2012}}
= Debt recapitalization =
In April 2013, Lee Enterprises announced that Berkshire Hathaway refinanced the remaining Pulitzer acquisition debt equating to $94 million, at no cost.{{cite web |url=http://www.nwitimes.com/business/lee-enterprises-refinances-million-in-debt/article_875d8b95-2b55-5f80-8fd6-4eede0232e90.html |title=Lee Enterprises refinances $94 million in debt |date=April 30, 2013 |work=nwitimes.com |access-date=11 May 2013 }}{{Dead link|date=September 2018 |bot=InternetArchiveBot |fix-attempted=yes }} The collateral involved was the TNI Partner stake including the Arizona Daily Star and [http://azstarnet.com/ azstarnet.com]. The result of this was a reduction in interest from a variable rate of 11.3% to a fixed rate of 9%, and an extension of the debt maturity date of the debt from December 2015 to April 2017. At the time of the announcement Lee Enterprises noted there was $893 million left to pay off. Lee paid off and retired its New Pulitzer notes in June 2015, six months before the original maturity date and 22 months before the new maturity date. Lee also refinanced its remaining debt in 2014 in order to extend the maturities from 2015 and 2017 to 2019 and 2022. Lee retired its 1st Lien Term Loan in November 2018, four months before its scheduled March 2019 maturity.
On June 27, 2018, Lee Enterprises and Berkshire Hathaway reached a five-year agreement to allow Lee Enterprises to manage Berkshire Hathaway's newspaper and digital operations.{{cite web| url= https://www.cnbc.com/2018/06/26/warren-buffett-hatches-deal-with-lee-enterprises-for-newspapers.html | title=Warren Buffett loves his newspapers, he just wants someone else to manage them for him | date=June 26, 2018| work=cnbc.com | access-date= 29 June 2018}}
= BH Media Group acquisition =
On January 29, 2020, Lee Enterprises announced an agreement to buy Berkshire Hathaway's BH Media Group publications and The Buffalo News for $140 million cash. The acquisition comprised 30 daily newspapers in 10 states plus 49 paid weekly publications with digital sites, as well as 32 other additional print products. Daily papers include the Omaha World-Herald, Richmond Times-Dispatch, Tulsa World, and Winston-Salem Journal. Lee entered into a 10-year lease for BH Media's real estate as part of the agreement.{{Cite web|url=https://www.stltoday.com/business/local/post-dispatch-owner-lee-enterprises-makes-m-deal-to-buy/article_1657074e-bf20-56e3-a162-1f50d81e626b.html|title=Post-Dispatch owner Lee Enterprises makes $140M deal to buy Berkshire newspapers|last=staff and wire|website=stltoday.com|language=en|access-date=2020-01-30}}
To finance the acquisition, Berkshire Hathaway provided $576 million in long-term financing to Lee at 9% per annum. Lee Enterprises used the funds to pay for the Berkshire properties and to refinance its roughly $400 million in existing debt. Much of this remains from the purchase of Pulitzer Inc. for $1.5 billion in 2005.{{Cite web|url=https://www.latimes.com/archives/la-xpm-2005-feb-01-fi-rup1.8-story.html|title=Lee Enterprises Buys Pulitzer for $1.46 Billion|date=2005-02-01|website=Los Angeles Times|language=en-US|access-date=2020-01-30}} Berkshire became Lee's sole lender after the deal closed on March 16, 2020.
"We had zero interest in selling the group to anyone else for one simple reason: We believe that Lee is best positioned to manage through the industry's challenges," Warren Buffett said in a statement.{{Cite web|url=https://www.bloomberg.com/news/articles/2020-01-29/warren-buffett-throws-in-the-towel-on-his-newspaper-empire|title=Warren Buffett Says Goodbye to His Struggling Newspaper Business|last1=Chiglinsky|first1=Katherine|last2=Edwards III|first2=John J.|date=2020-01-29|website=Bloomberg|access-date=2020-01-30}}
The acquisition was completed on March 16, 2020.{{cite press release | author=Lee Enterprises | date=March 16, 2020 | title=Lee Enterprises completes acquisition of Berkshire Hathaway newspaper operations | publisher=GlobeNewswire | url=https://www.globenewswire.com/news-release/2020/03/16/2001071/0/en/Lee-Enterprises-completes-acquisition-of-Berkshire-Hathaway-newspaper-operations.html | access-date=2024-07-01}}
= Attempted acquisition by Alden Global Capital =
Alden Global Capital purchased a 5.9-percent stake in Lee Enterprises in January 2020.
In November 2021, Alden made an offer to Lee to purchase the company in its entirety for roughly $141 million.{{cite news |last1=Benton |first1=Joshua |title=The vulture is hungry again: Alden Global Capital wants to buy a few hundred more newspapers |url=https://www.niemanlab.org/2021/11/the-vulture-is-hungry-again-alden-global-capital-wants-to-buy-a-few-hundred-more-newspapers/ |access-date=November 22, 2021 |publisher=Nieman Lab |date=November 22, 2021}}
In response, the board of Lee Enterprises enacted a shareholder rights plan, colloquially known as a "poison pill", in order to ward off the purchase attempt. The specific shareholder rights plan adopted by the Lee board forbids Alden from purchasing more than 10% of the company, and will be in force for one year. The rationale offered by the board was, "Consistent with its fiduciary duties, Lee's Board has taken this action to ensure our shareholders receive fair treatment, full transparency and protection in connection with Alden's unsolicited proposal to acquire Lee."{{cite news |last1=Mullin |first1=Benjamin |title=Lee Enterprises Enacts Poison Pill to Guard Against Alden Takeover |url=https://www.wsj.com/articles/lee-enterprises-enacts-poison-pill-to-guard-against-alden-takeover-11637793121 |access-date=November 25, 2021 |publisher=Wall Street Journal |date=November 24, 2021}}
In early December, the board of Lee unanimously rejected the Alden bid, saying that the Alden proposal "grossly undervalues Lee and fails to recognize the strength of our business today."{{cite news |last1=Bruell |first1=Alexandra |title=Lee Enterprises Board Rejects Alden's Acquisition Offer |url=https://www.wsj.com/articles/lee-enterprises-board-rejects-aldens-acquisition-offer-11639056463 |access-date=December 11, 2021 |publisher=Wall Street Journal |date=December 9, 2021}} Shortly thereafter, Alden Global, through its operating unit Strategic Investment Opportunities, filed a lawsuit in state court in Delaware against Lee Enterprises.{{cite news |last1=Turner |first1=Jonathan |title=Alden Global Capital takes Lee Enterprises to court over failed board nominations |url=https://www.ourquadcities.com/news/local-news/alden-global-capital-takes-lee-enterprises-to-court-over-failed-board-nominations/ |access-date=December 28, 2021 |publisher=QuadCities.com |date=December 21, 2021}} The Alden lawsuit asserts that the members of the Lee board "have every reason to maintain the status quo and their lucrative corporate positions" and that they are "focused more on [their] own power than what's best for the company."{{cite news |last1=Fischer |first1=Sara |title=Alden Global Capital sues Lee Enterprises after rejected takeover bid |url=https://news.yahoo.com/alden-global-capital-sues-lee-215449359.html |access-date=December 15, 2021 |publisher=Axios, republished on Yahoo News |date=December 15, 2021}}
In mid-February 2022, the Delaware court found in favor of Lee Enterprises. In the face of that setback, Alden said it would turn to the tactic of filing a proxy statement asking the company's shareholders to vote no on board members Mary Junck and Herbert Moloney during the March 2022 board elections.{{cite news |last1=Edmonds |first1=Rick |title=Alden Global Capital loses lawsuit to nominate its slate of candidates for Lee Enterprises' board |url=https://www.poynter.org/business-work/2022/alden-global-capital-loses-lawsuit-lee-enterprises-board/ |access-date=February 20, 2022 |publisher=Poynter.org |date=February 15, 2022}} This attempt also failed, as shareholders returned both directors to the Lee board despite Alden's opposition.{{cite news|last1=Hayden |first1=Sarah |title=Lee Enterprises shareholders reelect three directors amid hedge fund fight |url=https://theindependent.com/business/local/lee-enterprises-shareholders-reelect-three-directors-amid-hedge-fund-fight/article_ded9e9c5-aef7-5ff4-833d-738f41db999c.html |publisher=Quad-City Times |date=March 10, 2022 |access-date=May 20, 2022}}
=2022 layoffs=
In May 2022 Lee Enterprises reportedly laid off roughly 400 staffers, roughly 10% of the workforce. The reduction was spread across about 19 of the chain's 75 newspapers and included roles in corporate headquarters.{{cite news |last1=Fischer |first1=Sara |title=Scoop: Huge layoffs expected at Lee Enterprises |url=https://www.axios.com/lee-enterprises-layoffs-alden-6900c801-6c2c-4390-8479-49101c692e4f.html |access-date=May 3, 2022 |publisher=Axios |date=May 3, 2022}}
Some of the layoffs included the editor of The Eagle in Bryan, Texas and the publisher of The Bismarck Tribune in Bismarck, North Dakota.
=February 2025 Cyberattack=
In February 2025 Lee Enterprises suffered a cybersecurity event that prevented them from laying out or publishing papers for several days.{{cite news |last1=Neman |first1=Daniel |title=Daily Progress parent company victim of cybersecurity event |url=https://newsvirginian.com/news/local/business/news-virginian-parent-company-victim-of-cybersecurity-event/article_0afb0ebf-116f-5895-aea6-2b7df249b5f3.html |access-date=Feb 10, 2025 |publisher=Daily Progress |date=Feb 10, 2025}} Before the week's end, editors could again publish papers and back-issues were being delivered.
Following the attack, Lee Enterprises management warned employees to freeze their personal credit due to concerns that cyberattackers had accessed personal employee data. The warning was confirmed by an Independent Record sports reporter.{{cite web |last=McKenzie |first=Roy |title=Montana Newspaper Employees Warned to Freeze Personal Credit After Cyberattack on Lee Enterprises |url=https://www.westernmt.news/2025/03/06/montana-newspaper-employees-warned-to-freeze-personal-credit-after-cyberattack-on-lee-enterprises/ |publisher=Western Montana News |date=Mar 6, 2025 |access-date=Mar 11, 2025 }}
Newspapers
Lee Enterprises owns 72 daily newspapers and approximately 350 specialty publications in 26 states.{{cite web|title=Lee announces grant program to provide marketing assistance to local businesses impacted by COVID-19|publisher=Lee Enterprises|date=April 20, 2020|url=https://lee.net/news/lee-announces-grant-program-to-provide-marketing-assistance-to-local-businesses-impacted-by-covid-19/article_f7c8e67e-831a-11ea-9759-37addec81027.html}} The company's portfolio grew substantially, nearly doubling its audience size, with the acquisition of BH Media Group's publications in early 2020, including the Omaha World-Herald, Richmond (Virginia) Times-Dispatch and Tulsa World.
In January 2020, Lee Enterprises sold its newspaper and digital media operations in southern Oregon to Country Media, Inc. The sale included The World (Coos Bay), the Bandon Western World and The Umpqua Post. Lee had purchased the papers as part of its acquisition of Pulitzer, Inc. in 2005.{{Cite web|url=https://theworldlink.com/news/local/lee-enterprises-sells-media-assets-in-coos-bay/article_8b93d92c-e7c0-5e64-9264-b5375dcacc08.html|title=Lee Enterprises sells media assets in Coos Bay|website=Coos Bay World|date=23 January 2020 |language=en|access-date=2020-02-03}}{{cite news |title=Sale of Coos Bay World Announced|last=Dirks, Van Essen, Murray & April |date=January 25, 2020 |work=Faorfield (MT) Times |url=https://www.fairfieldsuntimes.com/business/sale-of-coos-bay-world-announced/article_4e60d370-3feb-11ea-9ac6-938bdeddac69.html }}
In March 2020, Lee sold the Santa Maria Times, The Lompoc Record, The Hanford Sentinel and the Santa Ynez Valley News, all in California, to Santa Maria News Media Inc., a newly-formed company led by a group of Canadian newspaper executives.{{Cite web|url=https://santamariatimes.com/news/local/lee-enterprises-sells-papers-in-santa-maria-hanford/article_0777966f-1bfb-5846-b03d-9012e9c37d56.html|title=Lee Enterprises sells papers in Santa Maria, Hanford|last=Report|first=Santa Maria Times Staff|website=Santa Maria Times|date=13 March 2020 |language=en|access-date=2020-03-15}}
In January 2023, Lee Enterprises ceased publication of its Lebanon, Oregon Lebanon Express weekly newspaper and rolled coverage of the area into the Albany Democrat-Herald. In June 2023, Lee sold the Daily Journal and three other newspapers to Better Newspapers Inc.{{Cite web |last=Jenkins |first=Kevin |date=June 29, 2023 |title=Better Newspapers Inc. buys four papers from Lee Enterprises |url=https://dailyjournalonline.com/2023/06/29/better-newspapers-inc-buys-four-papers-from-lee-enterprises/ |access-date=February 29, 2024 |website=Daily Journal}} In September 2023, Lee sold the Arizona Daily Sun to Wick Communications.{{Cite web |last= |first= |date=2023-09-06 |title=Wick Communications to acquire Flagstaff's Arizona Daily Sun |url=https://www.editorandpublisher.com/stories/wick-communications-to-acquire-flagstaffs-arizona-daily-sun,245570 |access-date=2023-09-07 |website=Editor and Publisher |language=en}} In October 2023, Lee sold The Southern Illinoisan to Paxton Media Group.{{Cite web |last= |first= |date=2023-10-27 |title=Paxton Media Group Acquires The Southern Illinoisan Newspaper |url=https://www.wpsdlocal6.com/news/paxton-media-group-acquires-the-southern-illinoisan-newspaper/article_7bbec3f4-74df-11ee-a0ec-cbcd499e0679.html |access-date=2023-10-28 |website=WPSD Local 6 |language=en}}
Other publications Lee has formerly owned include the North County Times, The Garden Island, The Provo Daily Herald, Daily Chronicle, Rhinelander Daily News, Shawano Leader, Napa Valley Register and The Ledger Independent of Maysville, KY
=List of newspapers=
References
{{reflist|30em}}
External links
- {{official website}}
{{Finance links
| name = Lee Enterprises, Inc.
| symbol = LEE
| reuters = LEE.N
| bloomberg = LEE:US
| sec_cik = LEE
| yahoo = LEE
| google = LEE
}}
{{Lee Enterprises}}
{{Davenport}}
{{Authority control}}
Category:Mass media in the Quad Cities
Category:1890 establishments in Iowa
Category:Companies based in Iowa
Category:Companies based in the Quad Cities
Category:Companies listed on the Nasdaq
Category:Companies formerly listed on the New York Stock Exchange
Category:Companies that filed for Chapter 11 bankruptcy in 2011