Lee Enterprises (NYSE:LEE) stock was flying high on Tuesday on news of a deal with Berkshire Hathaway (NYSE:BRK.A,BRK.B).
The deal between the two companies will have Lee Enterprises managing Berkshire Hathaway’s newspaper and digital operations across 30 markets. This will allow it to reorganize the business to make it more profitable, while Berkshire Hathaway retains ownership of the operations.
Lee Enterprises says that it will use its flexibility in the deal to make changes at the newspaper and digital operations that Berkshire Hathaway controls. The company wants to turn as much profit as it can because it will get to collect some of this after certain benchmarks are met.
This deal will have Lee Enterprises acting as the managers of these operations for Berkshire Hathaway for five years. The deal also includes an annual payment of $5 million for its work. LEE will still need approval from Berkshire Hathaway for certain changes and won’t have editorial control over the newspaper and digital operations.
The following are the operations that Lee Enterprises will be managing for Berkshire Hathaway for the next five years.
- Dothan Eagle
- Opelika-Auburn News
- The Daily Nonpareil in Council Bluffs
- Omaha World-Herald, The Grand Island Independent
- Scottsbluff Star-Herald
- The North Platte Telegraph
- Kearney Hub
- York News-Times
- The Press of Atlantic City
- Winston-Salem Journal
- Greensboro News & Record
- The News Herald in Morganton
- The McDowell News
- Statesville Record and Landmark
- Hickory Daily Record
- Tulsa World
- The Florence Morning News
- The Eagle in Bryan-College Station
- Waco Tribune-Herald
- Richmond Times-Dispatch
- The Daily Progress in Charlottesville
- The Roanoke Times, Bristol Herald Courier
- News & Advance in Lynchburg
- Martinsville Bulletin, Danville Register & Bee
- The Free Lance-Star in Fredericksburg
- Culpeper Star-Exponent
- The News Virginian in Waynesboro
- The Buffalo News
LEE stock was up 27% as of Tuesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
