Florida billionaire David Hoffmann is set to take over as the Chair of the Board of Lee Enterprises, one of America’s largest existing local newspaper chains, following a successful $50 million controlling stake bid.
As a result of the deal, current Lee CEO Kevin Mowbray has announced his retirement and stepped down from his position. COO Nathan Bekke will serve as the company’s Interim CEO for the time being, while Lee’s Board of Investors searches for a new candidate to permanently fill the role. Mowbray’s exit brings an end to his 39-year tenure with the local media giant.
“This transaction strengthens the Company’s balance sheet and reflects the Board’s determination to take decisive action,” said Hoffmann in a statement made concurrent with the deal Tuesday. “With improved financial stability and a clear governance framework in place, the focus can now be on disciplined execution and long-term value creation.”
“This transaction reflects the Board’s determination to act decisively,” added Mary Junck, Lee Enterprises’ current Chair of the Board. “By strengthening the balance sheet and improving the Company’s capital structure, we are putting the Company in a better position to execute and create long-term value.”
Founded in 1890 and based in Davenport, Iowa, Lee Enterprises is America’s fourth-largest newspaper chain. It controls over 70 newspapers across 26 states. His takeover of the company Tuesday furthers Hoffmann’s ongoing financial investment in the local newspaper business.
A Hoffmann-controlled media group has been busy buying up local newspapers in recent years, including the Napa Valley Register and Mackinac Island’s Mackinac Island Town Crier. Prior to this week’s deal, Hoffmann already owned around a 10% stake in Lee Enterprises, and he first expressed his desire to purchase a controlling stake in the local newspaper giant in a New York Times profile published in Aug. 2024.
The founder of DHR Global, Hoffmann controls a wide array of corporate entities, including Oberweis Dairy and Mitch’s Cookies. On Dec. 19, the Hoffman Family of Companies announced it had even acquired a controlling interest in the Pittsburgh Penguins NHL team.
Hoffmann’s latest, overarching venture come at a difficult time for the local newspaper business, which has taken heavy hits in recent years. Lee Enterprises itself is around $450 million in debt.
In his NYT profile, though, Hoffmann articulated his growing interest in the industry as a sincere effort to support a “key part of the American fabric.” A former high school quarterback, he expressed his dismay over the shrinking coverage of local athletes, noting, “You don’t get to read about kids’ sports.”
“These local newspapers are really important to these communities,” Hoffmann told the Times. “With the digital age and technology, it’s changing rapidly. But I think there’s room for both, and we’d like to be a part of that.”
As part of his Lee Enterprises deal, Hoffmann is committed to buying $35 million of the company’s shares. His supporting investors, meanwhile, have committed to buying the remaining $15 million shares of their original $50 million bid.
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