Lee Enterprises is buying Pulitzer for $64 per share, which comes out to about $1.46 billion.
Mary Junck, chairman and CEO of Lee, described the acquisition as a continuation of Lee’s long-term strategies.
“It’s another terrific acquisition for Lee — and, in both order of magnitude and revenue growth opportunities, remarkably similar to our highly successful purchase of the 16 Howard newspapers three years ago. The acquisition of Pulitzer allows us to take an exciting and logical next step into another exceptionally attractive group of markets, exactly the kind where we excel as an industry leader in building revenue and circulation.”
She added, “Just like in Lee, Pulitzer’s newspapers are, far and away, the primary source for news, information and advertising in their markets. Impressively, that’s also true in St. Louis, where Pulitzer has expanded on the powerful reach of the Post-Dispatch with its network of Suburban Journals and STLtoday.com. Because of Pulitzer’s strength and extended media platform, and also because of Midwestern lifestyle and economic similarities, we view St. Louis as very much like other Lee markets where we have been so successful.”
In the combined company, Pulitzer will represent about 39 percent of the revenue and 34 percent of the daily circulation.
Lee will become the fourth largest U.S. newspaper publisher in terms of dailies owned and seventh largest in circulation, growing from 44 to 58 daily newspapers in 23 states, with new total circulation of 1.7 million daily and 2.0 million Sunday.
Michael E. Pulitzer, grandson of the founder and chairman of the Pulitzer board of directors, said: “After a lengthy review process in which we explored a broad range of strategic alternatives, the Pulitzer board has determined unanimously that a combination with Lee is the best way to enhance value for all Pulitzer’s shareholders. As part of Lee, our newspapers will benefit from greater scale and resources, which are necessary to compete effectively in today’s increasingly competitive media market. Lee and Pulitzer share similar cultures and values, beginning with our long history in, and passion for, the newspaper business. We both care deeply about our employees, communities and the public trust, and we manage our newspapers in the same devoted ways. In short, we couldn’t have found a better steward to continue Pulitzer’s 125-year legacy of journalistic excellence.”
“Our management team is strong, experienced and enthusiastic about this opportunity, and our success with Howard has prepared us exceedingly well — and from what we’ve seen already, the Pulitzer management is equally enthusiastic and receptive,” said Junck.
While emphasizing that the basis of the acquisition is revenue growth, she said expected cost savings include purchasing leverage and reductions in corporate costs.
Under the agreement, Pulitzer Inc. will become a Lee subsidiary. With the addition of about 4,000 people from Pulitzer, Lee will have about 10,700 employees.
Among other aspects of the acquisition, Lee will gain a small minority stake in the St. Louis Cardinals major league baseball team.
murdok | Breaking eBusiness News
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