Lee Enterprises reached a deal with David Hoffmann, who will invest $50 million in the newspaper chain, becoming chairman and aiming to expand. CEO Kevin Mowbray will retire. Hoffmann’s investment fund includes 125 brands and 22,000 employees. Lee will refinance debt, reduce interest rates, and save $18 million yearly.

Hoffmann plans to strengthen local news coverage, reinvest in newsrooms post-takeover. Lee, like other news companies, faced declines in advertising and website traffic, leading to staff cuts and real estate sales. The new investment will help stabilize Lee’s business and strengthen its future prospects.

Buffett sold Lee’s newspapers to Lee with $455.5 million in debt. The new investment will reduce interest rates and save $18 million yearly. Lee’s stock soared 20% to $4.50 after the news. Hoffmann’s approach has been welcomed by Lee’s board, unlike a previous takeover bid. The focus now is on long-term value creation and digital subscription growth.

Read more at Yahoo Finance: Lee Enterprises stabilizes finances with $50M investment led by billionaire David Hoffmann