Postmedia Announces Community Newspapers Transaction with Torstar – HomeTown TV12
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Postmedia Announces Community Newspapers Transaction with Torstar

Postmedia Announces Community Newspapers Transaction with Torstar

15 from Eastern Ontario on Chopping Block!

Toronto – Postmedia Network Canada Corp. owner of Postmedia Network Inc. (“Postmedia” or the “Company”) today announced a transaction with Metroland Media Group and Free Daily News Group Inc., both subsidiaries of Torstar Corporation, (collectively, “Torstar”) to acquire 22 of Torstar’s community newspaper properties and 2 free commuter daily newspapers and to sell 15 of Postmedia’s community newspaper properties and 2 free commuter daily newspapers to Torstar. This is effectively a non-cash transaction as the properties have approximately similar fair values.

“This transaction allows Postmedia to focus on strategic areas and core products, and allows us to continue with a suite of community-based products, in a deeply disrupted industry,” said Paul Godfrey, Executive Chairman and Chief Executive Officer, Postmedia.

Postmedia intends to continue operating the Exeter Times-Advocate and the Exeter Weekender and will close the remainder of the acquired properties – which are located in areas serviced by multiple publications – by mid-January. These actions will deliver cost synergies while maintaining those operations that are sustainable and support Postmedia’s strategy. In addition, the transaction allows Postmedia to serve additional flyer and insert customers in certain markets using its existing distribution system.

“What makes this particularly difficult is that it means we will say goodbye to many dedicated newspaper people. However, the continuing costs of producing dozens of small community newspapers in these regions in the face of significantly declining advertising revenues means that most of these operations no longer have viable business models,” said Mr. Godfrey.

“The growing strength of digital giants has caused seismic shifts in the allocation of advertising revenues – putting all media companies under massive pressure,” said Andrew MacLeod, President and Chief Operating Officer, Postmedia. “Our digital strategies are showing promising signs but we must take all possible actions in order to give these new initiatives time to grow momentum while managing the decline of legacy revenue streams and their associated costs.”

Postmedia has independently determined its plans for the acquired publications. The transaction is not subject to the merger notification provisions of the Competition Act and no regulatory clearance is required to close the transaction.

Postmedia is shutting down 24 of the 26 papers acquired, including the following from eastern Ontario:

  • Metro Ottawa.
  • Belleville News.
  • Central Hastings News.
  • Frontenac Gazette.
  • Kanata Kourier-Standard.
  • Kingston Heritage.
  • Nepean/Barrhaven News.
  • Orléans News.
  • Ottawa East News.
  • Ottawa South News.
  • Ottawa West News.
  • Quinte West News.
  • Stittsville News.
  • St. Lawrence News.
  • West Carleton Review.

Transaction at a Glance

Properties Acquired by Postmedia from Torstar

Belleville News

Brant News

Central Hastings News

Exeter Times-Advocate
(and the Exeter Weekender)

Frontenac Gazette

Kanata Kourier-Standard

Kingston Heritage

Meaford Express

Metro Ottawa

Metro Winnipeg

Nepean/Barrhaven News

Norfolk News

Orleans News

Ottawa East News

Ottawa South News

Ottawa West News

Our London

Quinte West News

St. Lawrence News

St. Mary’s Journal-Argus
(and the St. Mary’s Weekender)

St. Thomas/Elgin Weekly News

Stittsville News

Stratford City Gazette

West Carleton Review

 

Properties Sold by Postmedia to Torstar

24 Hours Toronto

24 Hours Vancouver

Barrie Examiner

Bradford Times

Collingwood Enterprise Bulletin

Fort Erie Times

Innisfil Examiner

Inport News (Port Colborne)

Niagara Advance

Niagara Falls Review

Northumberland Today

Orillia Packet & Times

Pelham News

Peterborough Examiner

St. Catharines Standard

Thorold Niagara News

Welland Tribune

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