• by Ray Schultz , Columnist, March 23, 2025

Lee Enterprises, which has faced problems ranging from a cyber attack to a decline in print revenue, may have a buyer. 

The Hoffman Group of Companies, which recently increased its stake in Lee to 5.2%, making it the second-largest shareholder, says it is interested in taking over the whole enterprise. And Lee is willing to talk, according to reports. 

Hoffman says in a letter, “It is our stated goal to leverage our ownership position in Lee, along with our ownership of multiple other media brands, to support and grow local news outlets.”

What makes Hoffman different from any other potential buyer? 

“We believe this commitment represents a sharp contrast to other potential acquirers such as non-local hedge funds and investment firms primarily concerned with increasing profits over jobs, local concerns, and the power of quality journalism,” the Hoffman company says in a letter. 

This is an apparent reference to the unsuccessful bid by Alden Global Capital to take over Lee Enterprises in 2021 for $141 million, a matter that ended up in court. (For the record, Alden rejects the term “hedge fund.”) 

For his part, Hoffman told the New York Times last October, “We want it to be friendly. They have called us, as you would expect, and said, ‘What are you guys doing?’ And we’re going to sit down with them and tell them our story.”

A Hoffmann family trust paid roughly $4 million for its stake in Lee Enterprises last year. At that time, Hoffman told the Times that print newspapers are “a key part of the American fabric.”

Hoffman added, “These local newspapers are really important to these communities. 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.”

Of course, there’s no word yet on price, or on how Hoffman will produce the funding.

What could Hoffman possibly know about print publishing—or digital? His media group owns small papers such as the Mackinac Island Town Crier and the Napa Valley Register, a paper that it acquired from Lee Enterprises last year. 

Moreover, Hoffman is a seasoned business person and a reputed billionaire. He is the founder of the executive search firm DHR Global, and owns such enterprises as Mitch’s Cookies, Oberweis Dairy and the Florida Everblades hockey team.

What would Hoffman get if the Lee purchase happens? He would be acquiring a robust newspaper publishing company with a presence in 72 markets. 

Lee Enterprises increased its digital revenue by 5% YoY in Q1 2025 to $73 million. But operating revenue fell to $145 million, possibly driven in part by a 19% decline in print revenue to $19.8 million. The net loss totaled $16 million. 

Meanwhile, Lee’s operations were hurt by a February cyber attack perpetrated by the Qilin ransomware group. It is still dealing with the consequences. 

On another front, Lee Enterprises has agreed to pay $9.5 million to Montana residents to settle a class action suit over release of their personal data to Meta without consent.

Assuming they come to terms, let Hoffman have a go at it. His company is certainly making the right noises. “Today, more than ever, we embrace the concept that local news is a fundamental component of journalism and the communities it serves, and its preservation is in the best interest of a well-informed public,” it says in its letter.