Postmedia Network

Postmedia Network Canada Corp.[4] (also known as Postmedia Network, Postmedia News or Postmedia) is a Canadian-based media conglomerate majority-owned by American investors, consisting of the publishing properties of the former Canwest, with primary operations in English-language newspaper publishing, news gathering and Internet operations. It is best known for being the owner of the National Post and the Financial Post. It owns and operates over more than 130 print and digital news titles across Canada.[5][6]

The company's strategy has seen its publications invest greater resources in digital news gathering and distribution, including expanded websites and digital news apps for smartphones and tablets.[7] This began with a revamp and redesign of the Ottawa Citizen, which debuted in 2014.[7]

Approximately two-thirds of the equity in Postmedia is owned by the media-focused American hedge fund Chatham Asset Management. Under Canadian media ownership laws, Chatham can only elect one-third of Postmedia's board and is not permitted to directly control its operations, though the extent of Chatham's involvement has been disputed. Postmedia publications are known for having a conservative editorial stance.[8] The company is headquartered at Postmedia Place on Bloor Street in Toronto.[6]

History

The ownership group was assembled by National Post CEO Paul Godfrey in 2010 to bid for the chain of newspapers being sold by the financially troubled Asper family's Canwest (the company's broadcasting assets were sold separately to Shaw Communications). Godfrey secured financial backing from a U.S. private equity firm, the Manhattan-based hedge fund GoldenTree Asset Management—which owns 35 per cent—as well as IJNR Investment Trust, Nyppex and other investors. The group completed a $1.1 billion transaction to acquire the chain from Canwest on July 13, 2010.[9]

On October 6, 2014, Postmedia's CEO Godfrey announced a deal to acquire the English-language operations of Sun Media.[9][10] The purchase received regulatory approval from the federal Competition Bureau on March 25, 2015,[11] even though the company manages competitive papers in several Canadian cities; while the Sun Media chain owns numerous other papers, four of its five Sun-branded tabloids operate in markets where Postmedia already publishes a broadsheet competitor.[10] Board chair Rod Phillips has cited the Vancouver market, in which the two main daily newspapers, the Vancouver Sun and The Province, have had common ownership for over 30 years, as evidence that the deal would not be anticompetitive.[10] It also The purchase did not include Sun Media's now-defunct Sun News Network.[10] The acquisition was approved by the Competition Bureau on March 25, 2015,[12] and closed on April 13.[13]

In 2016, the company sought to restructure its compensation plans and reduce spending by as much as 20%, after reporting a net loss of $99.4 million, or 35 cents per diluted share, in the fourth-quarter ended Aug 31, compared with a $54.1 million net loss, or 19 cents per diluted share, in the same period a year earlier. This resulted in 90 newsroom staff losing their jobs.[14] Also in 2016, it was announced that the newsrooms of newspapers in Ottawa, Calgary, Edmonton and Vancouver, where Postmedia owns competing newspapers, would be merged into one newsroom per location while continuing to print each newspaper.[15]

On November 27, 2017, Postmedia and Torstar announced a transaction in which Postmedia will sell seven dailies, eight community papers, and the Toronto and Vancouver 24 Hours to Torstar, in exchange for 22 community papers and the Ottawa and Winnipeg versions of Metro. Except for the Exeter Times-Advocate, St. Catharines Standard, Niagara Falls Review, Peterborough Examiner, and Welland Tribune, all acquired papers will be closed.[16][17]

On June 26, 2018, Canadian Press reported that, by the end of August, Postmedia will be closing the Camrose Canadian in Camrose, Alberta, Strathmore Standard in Strathmore, Alberta, Kapuskasing Northern Times in Kapuskasing, Ontario, Ingersoll Times in Ingersoll, Ontario, Norwich Gazette in Norwich, Ontario and Petrolia Topic in Petrolia, Ontario. It will also cease printing the Portage Daily Graphic in Portage La Prairie, Manitoba, the Northern News in Kirkland Lake, Ontario, and Pembroke Daily Observer in Pembroke, Ontario while maintaining a digital presence for the three publications. As well, the High River Times in High River, Alberta will go from being published twice a week to once a week.[18]

During the COVID-19 pandemic, Postmedia laid off approximately 80 employees and permanently closed 15 community publications while navigating the financial strain of COVID-19. While the company utilized government subsidies, they claim they were unable to offset the decline in revenue.[19]

Postmedia closed 15 community newspapers in Manitoba and Ontario's Windsor-Essex area as the publications were no longer financially sustainable.[19] The publications included Manitoba's Altona Red River Valley Echo, Carman Valley Leader, Gimli Intertake Spectator, Morden Times, Selkirk Journal, Stonewall Argus & Teulon Times, Winkler Times, and The Prairie Farmer, leaving Portage La Prairie as the company's community presence in the province.[19] For Ontario, the closures included the Kingsville Reporter, Lakeshore News (Windsor-Essex area), LaSalle Post, Napanee Guide, Paris Star, Tecumseh Shoreline Week, and Tilbury Times.[19]

On February 17, 2022, Postmedia announced a definitive agreement to acquire Brunswick News Inc. (BNI). As well as several New Brunswick daily and weekly newspapers and "digital properties", BNI's assets included a parcel delivery business and "proprietary distribution software".[20]

In 2023, Postmedia announced it would be moving a dozen of its Alberta community papers to digital-only platforms, aiming for more outsourcing deals and laying off employees. The announcement was made January 18, 2023, during an internal memo to staff that was obtained by The Canadian Press, describing the measures as a part of a "transformation plan geared toward managing costs". Later that day, Postmedia said it had also sold the Calgary Herald building for $17.23 million to U-Haul Co. after trying to sell it for nearly a decade.[21]

In July 2023, Postmedia Network Canada Corp. and Nordstar Capital LP announced that merger discussion between the two newspaper publishers will not continue.[22]

On May 27, 2024, Postmedia announced that it would sell the Winnipeg Sun, the Portage la Prairie Graphic Leader, Kenora Miner and News, and company's Winnipeg printing operations to politician and former Sun publisher Kevin Klein.[23][24]

In July 2024, the company entered into an agreement to acquire SaltWire Network.[25] During the first week of December 2024, Postmedia rebranded Saltwire as PNI Atlantic News, with their websites changing to look like the parent company's other newspapers.[26]

Operating branch

Postmedia News is the news branch of Postmedia Network, providing similar content to all of its subsidiary news outlets and websites. It is identified as a source on all of its subsidiary newspapers.[27] The news agency provides news, sports, entertainment, photography, financial and feature information and data to Postmedia Network's Canadian newspapers, online properties and a number of third party clients in Canada and the United States.

Criticism

Assets

See also

Other media groups in Canada include:

• TC Transcontinental
• Star Media Group

External links

• Canada.com web portal