The new owner of the parent company of the Bloomington Pantagraph newspaper said the chain’s flagship paper is “a little too far left.”
According to media reports, billionaire hedge fund owner David Hoffman made the remark about the St. Louis Post Dispatch.
Hoffman now owns 53% of Lee stock. He took over as chair of Lee Enterprises this week after investing $50 million in the cash-strapped company. Lee also was hobbled a year ago by a cyberattack that disrupted delivery and online service. Lee had to defer interest payments to investor Berkshire Hathaway to recover from the attack.
Hoffman made his comments at an event held by the St. Louis Business Journal, saying he wants to reorient the paper toward the political middle. Hoffman said he is not laying anyone off.
At the event this week, Hoffman also expressed interest in buying the St. Louis Cardinals baseball team, although it is unclear whether the Cardinals are for sale. In December, Hoffman's firm announced the purchase of the Pittsburgh Penguins hockey team.
Last year, Hoffmann told the New York Times print newspapers are “a key part of the American fabric,” and important to communities even as most readers move online.
“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,” Hoffman told the Times.
Hoffman’s investment in Lee also lowered interest rates to 5% from 9% over the next five years for more than $455 million in long-term debt. That’s expected to improve Lee’s capital structure and cash flow and allow more investment in the company’s digital transformation, according to a Lee news release.
“This transaction strengthens the Company’s balance sheet and reflects the Board’s determination to take decisive action,” Hoffmann said in a December statement from Lee. “With improved financial stability and a clear governance framework in place, the focus can now be on disciplined execution and long-term value creation.”
The Hoffman family of companies based in Chicago owns commercial real estate and businesses such as Oberweis Dairy.
Lee Enterprises publishes more than 70 daily newspapers, and 350 weekly and specialty publications serving 73 markets in 26 states.
