Lee Enterprises, which owns five news outlets in Montana, announced that billionaire David Hoffmann of Florida is leading a $50 million purchase agreement that will give him a controlling stake in the company.
The deal is expected to close in the first quarter of 2026, Lee Enterprises said in a news release on Tuesday, Dec. 30.
The agreement puts Hoffmann in line for chairperson of the board in place of longtime chairperson Mary Junck, who said the move will “create long-term value” for the company.
In Montana, Lee Enterprises owns the Billings Gazette, the Missoulian, the Helena Independent-Record, the Montana Standard, and the Ravalli Republic.
The company has been cutting newsrooms in the state for years, the Daily Montanan reports.
In spring 2023, Lee Enterprises eliminated at least 13 newsroom positions in Montana, representing one-third to one-half of the existing editorial staff at its papers.
In 2024, in the span of three months, Lee newspapers in Montana lost 70 years' worth of journalism experience when the company cut a managing editor and two veteran journalists chose to leave.
The news release from Lee Enterprises did not address whether the agreement came with a plan for investment in newsrooms, and in an email, a spokesperson for Lee said the company did not have further comment.
In a statement, Hoffmann said the deal strengthens the company’s balance sheet.
“With improved financial stability and a clear governance framework in place, the focus can now be on disciplined execution and long-term value creation,” Hoffmann said.
The deal was announced after Lee Enterprises canceled a special shareholder meeting set for Dec. 19, one day before it was scheduled.
The company was slated to review financing proposals in the face of financial challenges.
In November, Lee Enterprises reported a $36 million net loss for the 2025 fiscal year. It said a cyber attack earlier this year cost $4 million in restoration alone.
The new agreement is expected to save the company millions of dollars in interest payments.
It lowers the rate on $455.5 million of long-term debt from 9% to 5% for five years, “materially improving” the company’s “cash flow outlook,” according to Lee Enterprises.
The news release from Lee Enterprises said its board of directors unanimously approved the deal and “decisive action was required.”
A news story from a Lee reporter said the company found itself “without other options.”
The Quad City Business Journal described Hoffmann as “a renowned entrepreneur and philanthropist.”
It said Hoffmann, as founder of Hoffmann Family of Companies, oversees a network of enterprises that employs more than 17,000 people around the world and includes properties in 30 countries.
In December 2024, Hoffmann declared an interest in becoming Lee’s largest shareholder. Hoffmann Media Group is a subsidiary of the Hoffmann Family of Companies.
“We believe in newspapers, local journalism, and digital media,” Hoffmann said in a statement at the time. “We have been and continue to be successful throughout the country with our media assets.
“I’m not going away, and we will continue to invest. We feel local journalism is a part of the fabric of America and will invest to protect it and help it prosper.”
The president of Lee Montana could not be reached on Wednesday for comment; Dave Worstell is the outgoing president, retiring this year, and his out-of-office message directed emails to incoming head of Lee Montana Bill Merrill, who could not be reached by email on Wednesday morning.
According to the news release from Lee, CEO and President Kevin Mowbray is retiring as part of the deal. Chief Operating Officer Nathan Bekke is expected to serve as interim CEO, and a search is underway for a permanent CEO, according to the news release.
Editor’s note: Keila Szpaller worked for the Missoulian of Lee Enterprises for 14 years before joining the Daily Montanan in December 2020.
Daily Montanan is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Daily Montanan maintains editorial independence. Contact Editor Darrell Ehrlick for questions: info@dailymontanan.com.
