Warren Buffet’s Berkshire to sell off newspaper unit to Lee Enterprises

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Warren Buffet’s Berkshire to sell off newspaper unit to Lee Enterprises

American billionaire entrepreneur, investors and philanthropist, Warren Buffet’s Berkshire Hathaway Inc. had at last reached an accord to sell off its newspaper business to Davenport-based American media company, Lee Enterprises Inc., at an $140 million all-cash buyout deal, turning a deaf ear to an industry which the billionaire investors had defended for long despite deteriorating financial prospects, Buffet’s Berkshire said in a statement on Wednesday (January 29th).

Apart from that, addressing to Lee Enterprises Inc.’s commitment to newspaper business, Buffer said in a statement on Wednesday (January 29th) following reveal of the sell-off announcement, “No organization is more committed to serving the vital role of high-quality local news, however delivered, as Lee”.

On top of that, as part of the $140 million buyout deal, the Lee Enterprises Inc., which publishes 46 daily newspapers in 21 US states alongside more than 300 classified, specialty and weekly publications, would receive 31 daily newspaper alongside 49 weekly publications including the Tulsa World in Oklahoma, Richmond Times-Dispatch in Virginia, Omaha World-Herald in Nebraska, the hometown of Berkshire alongside the Buffalo News in NY.

Nonetheless, followed by the reveal of the announcement, NYSE-listed shares’ prices of Lee Enterprises space-dived as much as 125 per cent to $2.82 per share on Wednesday’s (January 29th) after-market trading, however, during preparation of the report, morning US trading hours, Lee Enterprises’ shares were trading 9.95 per cent lower to $1.90 per share.