Hedge Fund Offers To Buy Newspaper Publisher Lee Enterprises For $141M: What You Need To Know

The New York City-based hedge fund Alden Global Capital LLC has offered to acquire publishing company Lee Enterprises Inc. LEE and take it private.

What Happened: According to the New York Times, Alden Global’s proposal values the company at approximately $141 million. The hedge fund offered to purchase Lee at $24 per share in cash.

Lee, which is headquartered in Davenport, Iowa, is the nation’s fourth-largest newspaper group and has news operations in 77 U.S. markets. The company’s most prominent publications include the St. Louis Post-Dispatch, The Press of Atlantic City and the Napa Valley Register.

In January 2020, Lee bought Berkshire Hathaway Inc.’s (NYSE: BRK-B) newspaper business for $140 million, picking up 31 newspapers including the Richmond Times-Dispatch, Omaha World-Herald and Buffalo News.

Lee did not publicly comment on Alden Global’s offer.

See Also: Moon or Bust: We Tried Buying The Constitution - Ava Labs (AVAX) President Interview

Why It Matters: Alden Global’s offer marks the second time this year that it has set its sights on another newspaper publishing company. Last May, Alden purchased Tribune Publishing Co. for $633 million, acquiring publications that included the Chicago Tribune, Baltimore Sun and New York Daily News.

Alden Global sent a letter to the Lee board on Monday stating that coming under the hedge fund’s ownership would put the company “in a stronger position to maximize its resources and realize strategic value that enhances its operations and supports its employees in their important work serving local communities.”

Alden owns approximately 200 publications through its MediaNews Group subsidiary. It also bought a 6% stake in Lee in 2020.

Photo: Jon S./Flickr Creative Commons

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: M&ANewsMediaAlden Global CapitaljournalismNewspaperspublishing
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!