Is Berkshire Hathaway smart or behind the times?

Warren Buffett's Berkshire Hathaway (BRK.A - Get Report) (BRK.B - Get Report) will be passing the reins of its BH Media Group to Lee Enterprises Inc. (LEE - Get Report) . The company will still own the the media conglomerate, but Lee will be in charge of management. 

Under the agreement, Lee will be paid $5 million annually and will get a cut of profits. 

BH Media owns 30 daily newspapers, including the Omaha World-Herald and Richmond Times Dispatch, 47 weekly newspapers and 32 other print products. Lee owns 46 newspapers including the St. Louis Post-Dispatch and 300 other publications.

"I love our newspapers and am passionate about the vital role they serve in our communities," Buffett said in a statement. "Our missions and goals match exactly, our markets are similar, and we both have excellent managers. Operating together will strengthen both of us, and Lee is logical to lead the process."

Buffett also said, "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. Lee also has led the industry in overall innovation and performance, all while faithfully fulfilling its public trust as an indispensable source for local news, information and advertising."

Lee was up 20% on the session. BRK.A was up over 0.5%, while BRK.B was up slightly.