• by Ray Schultz , March 26, 2025

Lee Enterprises has reacted to a possible takeover bid from the Hoffman Group of Companies by extending its shareholder rights plan for one year, to March 27, 2026, potentially halting any such deal. 

Hoffman now has an ownership stake of roughly 9.8% of Lee’s outstanding common stock, Lee says. Hoffman has publicly announced its interest in Lee without naming a possible purchase price.

Lee’s adopted the rights plan in March 2024 in response to what it says was a “significant” accumulation of shares by a shareholder that controlled a digital publishing firm that Lee alleges sought to compete with the Lee’s subsidiary, BLOX Digital. 

The Rights Plan is not intended to deter offers or preclude the board from considering what it deems are fair offers, Lee says. But the plan does guard against tactics to gain control of the company without paying all shareholders an appropriate amount, Lee continues.

Hoffman sent a letter, stating that its commitment to a purchase “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.”

Alden Global Capital attempted to take over Lee Enterprises in 2021 for $141 million, a matter that ended up in court.