Torstar Sold for $52 Million
CBJ – The decay of the newspaper industry has been noticeable for many years and so it comes as no real surprise to see that Torstar has agreed to be sold to NordStar Capital for $52 million.
Torstar owns more than 70 newspapers across the country, the most prominent of which is the Toronto Star, Canada’s largest daily newspaper by circulation.
The sale means that the company will be taken private.
NordStar is controlled by Jordan Bitove and Paul Rivett and wholly owned by the Bitove and Rivett families. Rivett was most recently president at Fairfax Financial Holdings, which is led by its founder, Chairman and CEO Prem Watsa. Fairfax, the largest independent shareholder in Torstar, played a pivotal role in the sale by offering its strong support for the deal.
Former Ontario premier David Peterson will be appointed as vice-chair of the Toronto Star following completion of the business transaction. It’s expected that Torstar CEO John Boynton will continue in his role.
There was no immediate mention as to whether any publications would be shut down or if layoffs were in the offing, but sales of this magnitude often lead to restructuring measures as a means of cutting costs.
Newspapers and print magazines have struggled mightily in this new digital era with so many news outlets available on the internet. That doesn’t even count social media sites such as Facebook, YouTube and Twitter, which have all taken more prominent roles in posting news items on their sites.