Lee Enterprises, a major media company based in Iowa, rejected an unsolicited buyout offer from Alden Global Capital, a hedge fund known for drastically downsizing the newspapers it owns.
In a Thursday morning announcement, Lee鈥檚 board chair Mary Junck said the newspaper company and its growing digital business.
鈥淲e remain confident in our ability to create significant value as an independent company and are focused on our Three Pillar Digital Growth Strategy, detailed earlier this year. We have demonstrated accelerating momentum across our platforms as we execute our plan,鈥� Junck said in a statement.
Last month, Alden Global Capital revealed a proposal to purchase Lee Enterprises and its newspapers at $24 a share, through the many newsrooms owned by Lee.
If approved, Alden would take over the St. Louis Post-Dispatch, the Omaha World-Herald, the Sioux City Journal and 21 other daily newspapers throughout Missouri, Iowa and Nebraska.
In a separate statement released Thursday morning, Lee reported new growth in its fourth-quarter results. The company saw 37% growth in digital revenue and 65% growth in digital-only subscriptions, according to the statement.
鈥淭he Alden proposal grossly undervalues Lee and fails to recognize the strength of our business today, as the fastest-growing digital subscription platform in local media, and our compelling future prospects,鈥� Junck said in the statement.
The board鈥檚 decision comes after pushback against Lee鈥檚 proposal from the newspaper companies' unions, and the company itself, which adopted a poison pill strategy to fend off Alden鈥檚 takeover bid.
On Wednesday the paper鈥檚 second-largest shareholder , calling it 鈥渋nsufficient and opportunistic.鈥�
鈥淟et me be blunt. I simply do not understand what needs to be evaluated here,鈥� Kupperman wrote. 鈥淎lden鈥檚 proposed purchase price is clearly insufficient and opportunistic, grossly undervaluing the business.鈥�
After the vote, Kupperman said the board sent 鈥渢he right message鈥� with their decision, calling the rejection of Alden鈥檚 offer a win for Lee. He noted that Lee stock was up 10% Thursday morning, or roughly $27 a share.
鈥淭he board made the right decision here,鈥� Kupperman said. 鈥淚t's good for shareholders, it's good for journalists and it's good for the communities they serve. Everyone wins here.鈥�
The Omaha World-Herald union鈥檚 Twitter account stated Lee must remain 鈥渧igilant.鈥�
鈥淲e must remain vigilant 鈥� this offer won鈥檛 be the assassin鈥檚 last,鈥� the post read. 鈥淎lden not only grossly undervalues journalism, it grossly undermines it.鈥�
This is a developing story. Check back for updates.
Kavahn Mansouri is the Midwest Newsroom鈥檚 investigative reporter. Follow him on Twitter: @kavahnmansouri
The Midwest Newsroom is an investigative journalism collaboration including 漏 2024 外网天堂, KCUR, Iowa Public Radio, Nebraska Public Media and NPR.
