January 31, 2020

Billionaire Warren Buffet is selling BH Media Group, which owns 31 daily and 47 weekly newspapers, to Lee Enterprises Inc. for $140 million in cash. This represents the first major newspaper condensation of 2020. Lee provides news, information and advertising in 50 markets in 21 states. The company boasts 300+ weekly publications, 1.1 million newspaper subscribers and 73 million monthly digital views. Berkshire Hathaway is providing approximately $576 million in long-term financing to Lee at a 9% annual interest rate. The proceeds from this loan will pay for the acquisition, refinance approximately $400 million of Lees debt, and provide cash to terminate Lees revolving line of credit.