There is yet another media merger on the horizon in Canada as Postmedia announces it’s entering into talks with the owner of the Toronto Star.
In a release, Postmedia Network Canada Corp. has confirmed that it has entered into non-binding discussions with Nordstar Capital LP.
Nordstar currently owns Metroland Media Group and the Toronto Star.
“The core rationale for the proposed merger is to create a new entity with reduced debt, national digital scale to compete with the global technology giants and economies of scale in the business model. The proposed merged entity would provide the best opportunity to ensure strong news media coverage for Canadians from coast to coast,” said Andrew Macleod, president and chief executive officer of Postmedia.
Wow: Postmedia and the owners of the Toronto Star confirm merger talks. pic.twitter.com/aOSajJ3gIf
— Simon Houpt (@simonhoupt) June 27, 2023
While the discussions are ongoing, some details have emerged about potential ownership with Postmedia, saying the merged entity, which has yet to be named, would be jointly owned and jointly controlled by Nordstar and existing Postmedia shareholders.
Regarding leadership for the potential new entity, Jordan Bitove, publisher of the Toronto Star and owner of Nordstar, would be Chairman of the merged entity, and Andrew MacLeod, CEO of Postmedia, would be CEO.
According to the release, the Toronto Star would still have editorial independence as it would enter the merger with the incorporation of a new company, Toronto Star Inc.
Nordstar would retain a 65% interest in Toronto Star Inc., and Bitove would remain the publisher.
While it’s no secret media outlets have been struggling across the country for years, especially as Bill C-18 is passed, Bitove says this merger would help ensure Canadians have access to the stories that impact and matter to them.
“The viability of the newspaper industry in Canada is at an extreme risk, especially in the small towns and communities that are important to this nation. By pooling resources and working collaboratively, we can ensure that more Canadians have access to trusted journalism and quality reporting, states Bitove.
He says, “This will strengthen our democracy and protect the fabric of our country.”
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Canadians unsure about the benefits of this potential merger
Many Canadians on social media are questioning the potential deal and raising concerns about what this could mean for local news.
No one should be pooling resources with Postmedia, which has only brought doom and destruction to every regional newspaper in its clutches.
— Peggy Curran (@peggylcurran) June 27, 2023
Wow, that would rapidly destroy both companies. pic.twitter.com/f8TeYWYosJ
— Matthew Forbes (@VaughanPappy) June 27, 2023
Wow, TorStar and Postmedia are in talks of merging to create yet another monopoly in what should be a democratization of Canadian journalism. I can't imagine what this will mean in terms of more media layoffs.
— Samuel Dunsiger (He/Him) (@samdunsiger) June 27, 2023
Postmedia & Toronto Star might MERGE
If that happened it will be the end of print Journalism in Canada
As all the newspapers in Canada will be CONSERVATIVE#cdnpoli
— G.T. Lem 林 家 聰 (@gtlem) June 27, 2023
At this point, talks are underway, and Postmedia states that a number of conditions would have to be met for this merger to continue.
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