Industry watchers reacted with interest to the announcement that Lee Enterprises will manage Warren Buffett’s BH Media papers in 30 markets, an arrangement to start July 2.
“The announcement did not say, but my guess is that Lee is now positioned to acquire the BH papers at a later date,” wrote Poynter Institute analyst Rick Edmonds. “The move indicates Buffett's souring on the prospects of local newspapers, as he has said at recent shareholder gatherings, and a sort-of phased withdrawal from the business.”
Lee CEO Kevin Mowbray said his company looks to make some $50 million over the five-year agreement. The agreement sets a yearly $5 million fixed fee plus a significant percentage of profits over benchmarks. Either party can extend the agreement.
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