The parent company of the Pantagraph Newspaper has decided not to engineer what's called a reverse stock split. WGLT's Charlie Schlenker reports why.
Lee Enterprises had planned the reverse stock split to bolster the price of its shares and satisfy New York Stock Exchange requirements to continue being listed on the exchange for trading. But, early this month, billionaire investor Warren Buffet disclosed he had plunked down a couple million dollars for a 3.2% stake in the Davenport, Iowa based company. Buffet has also pursued a strategy of investing in other newspapers in medium sized cities. Lee's stock began to rise. Analysts say Lee's stock price has also jumped along with other newspaper company values as Rupert Murdock's spinoff of his print publishing properties indicates there is a market for traditional media platforms. Lee's stock price is at a 52 week high and has gained nearly 60% in the last month.
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