In 2000, Lee sold its broadcasting division to pay off debt and to focus on newspaper publishing. Most of the TV stations were sold to Emmis Communications[7] and as of 2007 had been sold onward to other companies.
Chapter 11 bankruptcy and bailout reorganization
In 2011, the company filed for Chapter 11 bankruptcy.[8] It emerged from bankruptcy less than two months later. In April 2012, Warren Buffett's Berkshire Hathaway Inc. took a stake in Lee Enterprises, buying $85 million of the company's debt from Goldman Sachs Group.[9]
In June 2012, Berkshire Hathaway filed an amended Form 13F (13F-HR/A) for the period ending March 31, 2012.[10] This document disclosed that Berkshire accumulated $2,119,000 or 1,655,125 common shares of Lee Enterprises, or a 3.2 percent stake.[11] The document said that Berkshire had asked the SEC to keep the transaction secret, a request denied on May 25, 2012.[12]
From January 2012 to April 2017, the company's executive chairman, Mary Junck, was chairman of the Associated Press.[13] In December 2018, Lee Enterprises announced that Mary Junck would switch from Executive Chairman to Chairman of the company.[14]
In April 2013, Lee Enterprises announced that Berkshire Hathaway refinanced the remaining Pulitzer acquisition debt equating to $94 million, at no cost.[15] The collateral involved was the TNI Partner stake including the Arizona Daily Star and azstarnet.com. This produced a reduction in interest from a variable rate of 11.3% to a fixed rate of 9%, and an extension of the debt maturity date of the debt from December 2015 to April 2017. At the time of the announcement Lee Enterprises noted there was $893 million left to pay off. Lee paid off and retired its New Pulitzer notes in June 2015, six months before the original maturity date and 22 months before the new maturity date. Lee also refinanced its remaining debt in 2014 in order to extend the maturities from 2015 and 2017 to 2019 and 2022. Lee retired its 1st Lien Term Loan in November 2018, four months before its scheduled March 2019 maturity.
On June 27, 2018, Lee Enterprises and Berkshire Hathaway reached a five-year agreement to allow Lee Enterprises to manage Berkshire Hathaway's newspaper and digital operations.[16]
On January 29, 2020, Lee Enterprises announced an agreement to buy Berkshire Hathaway's BH Media Group publications and The Buffalo News for $140 million in cash. The acquisition comprised 30 daily newspapers in 10 states plus 49 paid weekly publications with digital sites, as well as 32 other print products. Daily papers include the Omaha World-Herald, Richmond Times-Dispatch, Tulsa World, and Winston-Salem Journal. As part of the agreement, Lee leased BH Media's real estate for 10 years.[17]
Berkshire Hathaway provided $576 million in long-term financing to Lee at 9% per annum. Lee Enterprises used the funds to pay for the Berkshire properties and to refinance its roughly $400 million in existing debt. Much of this remains from the purchase of Pulitzer Inc. for $1.5 billion in 2005.[18] Berkshire became Lee's sole lender after the deal closed on March 16, 2020.[17]
"We had zero interest in selling the group to anyone else for one simple reason: We believe that Lee is best positioned to manage through the industry's challenges," Buffett said in a statement.[19]
Attempted takeover
In January 2020, Alden Global Capital purchased a 5.9-percent stake in Lee Enterprises.
In November 2021, Alden offered to buy the rest of Lee for roughly $141 million.[21]
To ward this off, the board of Lee Enterprises enacted a shareholder rights plan, colloquially known as a "poison pill", that forbade Alden to buy more than 10% of the company for one year. The rationale offered by the board was, "Consistent with its fiduciary duties, Lee's Board has taken this action to ensure our shareholders receive fair treatment, full transparency and protection in connection with Alden's unsolicited proposal to acquire Lee."[3]
In early December, the board of Lee unanimously rejected the Alden bid, saying it "grossly undervalues Lee and fails to recognize the strength of our business today."[22] Shortly thereafter, Alden Global, through its operating unit Strategic Investment Opportunities, filed a lawsuit in state court in Delaware against Lee Enterprises.[23] The Alden lawsuit asserts that the members of the Lee board "have every reason to maintain the status quo and their lucrative corporate positions" and that they are "focused more on [their] own power than what's best for the company."
2022 layoffs
In May 2022, Lee Enterprises reportedly laid off roughly 400 staffers, roughly 10% of the workforce. The reduction was spread across about 19 of the chain's 75 newspapers and included roles in corporate headquarters.[28]
Some of the layoffs included the editor of The Eagle in Bryan, Texas and the publisher of The Bismarck Tribune in Bismarck, North Dakota.[28]
February 2025 cyberattack
In February 2025, a cyber attack prevented the company from laying out or publishing papers for several days.[29] Before the week's end, editors could again publish papers and back-issues were being delivered.
After the attack, Lee Enterprises management warned employees to freeze their personal credit due to concerns that cyberattackers had accessed personal employee data. The warning was confirmed by an Independent Record sports reporter.[30]
In June 2025, Nathan Bekke was appointed Chief Operating Officer. He started working for Lee in 1988 and had been with the company for more than three decades, holding a number of leadership positions.[31]
