NEW YORK, NY / ACCESSWIRE / June 27, 2018 / LendingTree closed down over 8% on Tuesday despite any catalyst. Earlier this month the company completed its acquisition of credit service provider Ovation Credit Services. Shares of Lee Enterprises were gaining steam after announcing that it has been hired by Warren Buffett's Berkshire Hathaway to manage its newspapers.
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Lee Enterprises, Incorporated
LendingTree, Inc. shares closed down 8.09% on about 624,000 shares traded on Tuesday. There was no particular news to explain the drop yesterday but it was last week that the company released its Consumer Debt Outlook for June 2018. According to the nation's leading online marketplace, American household debt is currently on pace to exceed the prior peak debt level from 2008 by the end of the month. Highlights of the findings include: American household debt is currently on pace to be $1 trillion above the peak debt level of 2008 by the end of the June and that the figure has been increasing at a 3.4 percent annual rate and includes mortgage debt. The findings also found that total mortgage and consumer debt levels are on pace to reach $15.7 trillion at the end of the second quarter, versus $14.7 trillion 10 years ago. It was also earlier this month that the company announced that its subsidiary, LendingTree, LLC, has completed its acquisition of Ovation Credit Services, Inc., a leading provider of credit services with a strong customer service reputation. CEO of Lending Tree, Doug Lebda, remarked, "We welcome the Ovation Credit Services team to LendingTree. As a respected provider of credit services with strong industry relationships and unparalleled customer service, Ovation Credit Services will further expand our capabilities in helping consumers improve their financial health."
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Lee Enterprises, Incorporated shares closed up almost 20% on Tuesday with almost 4.9 million shares traded. The stock sailed to a new high of $3.30 after it was revealed that the company has been hired by Warren Buffett's Berkshire Hathaway to manage the mostly smaller newspapers it has acquired since 2011 in 30 different markets. As part of the five-year agreement, Berkshire will pay Lee $5 million a year plus a percentage of profit after certain hurdles are met. Lee Enterprises believes it will collect $50 million in fees. President of the company Kevin Mowbray stated, "In addition to the primary benefit of deploying Lee's successful strategies at BH Media, this alliance provides a significant expansion of operating scale, adding 30 markets to our own 49." Buffett stated that "although the challenges in publishing are clear, I believe we can benefit by joining efforts. Lee Enterprises' growth in digital market share and revenue has outpaced the industry."
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