Postmedia Buys Papers From QMI for $316 Million
CBJ – Postmedia is purchasing 175 English-language newspapers owned by Quebecor Media in a cash deal valued at $316 million making concentration within the industry even more prevalent. While there will be arguments that concentration is bad for competition, the declining state of the newspaper industry as a whole is essentially forcing this move in order for it to remain as viable as possible, with dwindling advertising revenue brought on by the new digital age.
Among the newspapers being acquired will be the Sun Media chain, including the Toronto Sun. Postmedia will finance the deal through a mixture of debt and equity. The proposed sale still must be formally approved by the board of directors at both QMI and Postmedia. Additionally, finalization of the sale is subject to regulatory approval from the Competition Bureau. In the meantime, QMI will continue to operate the Sun Media properties.
This major acquisition will provide Postmedia with an enhanced presence in many Canadian markets such as Vancouver, Edmonton, Calgary, Toronto and Ottawa, where it currently operates newspapers including the National Post and Calgary Herald. In a statement released to the media earlier today, Postmedia president and CEO Paul Godfrey says the company intends to continue to operate the Sun Media major market dailies and their digital properties side by side with our existing properties in markets with multiple brands as we have in Vancouver with the Province and the Vancouver Sun for more than 30 years.