MarketWatch’s Ciara Linnane reports the following, which could have a direct effect on you:
“Lee Enterprises Inc. shares LEE, +15.63% surged 56% in pre-market trade Tuesday, after the company said it is teaming up with BH Media Group Inc. to manage Berkshire Hathaway Inc.’s newspaper and digital operations in 30 markets, effective July 2. [One of those newspapers Lee will manage is The Roanoke Times.]
“Under the terms of the deal, Berkshire will remain owner of BH Media, but Lee will be able to implement revenue initiatives and other strategies that are in line with how it manages its own papers.
“Davenport, Iowa-based Lee has nearly 300 weekly and specialty publications serving 49 markets in 21 states. BH Media owns 30 daily newspaper and digital operations, as well as 47 paid weekly newspapers and websites and 32 other print products, including the Winston-Salem Journal, the Richmond Times Dispatch and Tulsa World.
“Berkshire Chief Executive and Chairman Warren Buffett said Lee’s growth in digital market share and revenue has outstripped the industry. ‘Our missions and goals match exactly, our markets are similar, and we both have excellent managers,’ he said. ‘Operating together will strengthen both of us, and Lee is logical to lead the process.’ Shares have gained 2.1% in 2018 through Monday, while the S&P 500 SPX, +0.08% has gained 1.6%.”
I have no idea what this means in the long run, but BH Media has not been good for the Roanoke market and my guess is that Lee will intensify the disconnect.