David Hoffman, a billionaire from Florida will soon take over as the chair of the board of Lee Enterprises. Along with other investors, Hoffman made a successful bid of $50 million and purchased a controlling stake in one of America’s largest local newspaper chains that was founded more than a century ago.
Hoffman has been investing in the local newspaper businesses from the past years. It has already acquired the Napa Valley Register and Mackinac Island’s Mackinac Island Town Crier. The Florida billionaire recently increased his stake to $50 million along with a group of investors. His earlier stake was roughly $10 million.
After the deal was announced, Kevin Mowbray, the current CEO of the Lee group announced his retirement after a 39-year tenure. COO Nathan Bekke is the new interim CEO as the board of investors look for a new candidate to fill the role permanently.
David Hoffman released the following statement: “This transaction strengthens the Company’s balance sheet and reflects the Board’s determination to take decisive action.”
The Tuesday statement also said, “With improved financial stability and a clear governance framework in place, focus can now be on disciplined execution and long-term value creation.”
Lee Enterprises’ current chair of the board Mary Junck said, “This transaction reflects the Board’s determination to act decisively. By strengthening the balance sheet and improving the Company’s capital structure, we are putting the Company in a better position to execute and create long-term value.”
Lee Enterprises is one of the largest and oldest newspaper chains in the US. It was founded in 1890 and has more than 70 newspapers located in 26 different states. The paper provides local information and advertisements that are vital for its communities as well as web fans.
Local newspapers from Lee Enterprises are available in print and digital media. CWEB analysts note that the infusion of funds from investors, including Hoffman will help the chain to grow at a time when print media is facing challenges.
