Postmedia Network

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Postmedia Network Canada Corporation
Public
Traded as TSXPNC.APNC.B
Industry Newspaper publishing
Predecessor Canwest
Founded 13 July 2010; 8 years ago (2010-07-13)
Headquarters Toronto, Ontario, Canada
Key people
Paul Godfrey - President
Products Newspapers
Revenue Increase CAD$750.283 million (2015)[1]
Number of employees
4,733[2]
Subsidiaries Postmedia News
Website Postmedia Network

Postmedia Network Canada Corporation (also known as Postmedia Network or Postmedia) is a Canadian media company consisting of the publishing properties of the former Canwest, with primary operations in newspaper publishing, news gathering and Internet operations.

The ownership group was assembled by National Post CEO Paul Godfrey[3] in 2010 to bid for the chain of newspapers being sold by the financially troubled 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.[3] The group completed a $1.1 billion transaction to acquire the chain from Canwest on July 13, 2010. Headquartered in Toronto, Ontario, the company has over 4,700 employees.[4] The company's shares were listed on the Toronto Stock Exchange in 2011.[5]

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.[6] This began with a revamp and redesign of the Ottawa Citizen, which debuted in 2014.[6]

History

On July 13, 2010 the Manhattan-based hedge fund, Golden Tree Asset Management acquired the Asper family’s bankrupt CanWest media empire for $1.1 billion.[3]

On October 6, 2014, Postmedia's CEO Godfrey announced a deal to acquire the English-language operations of Sun Media.[3][7] The purchase received regulatory approval from the federal Competition Bureau on March 25, 2015,[8] 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.[7] 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.[7] The purchase did not include Sun Media's now-defunct Sun News Network.[7] The acquisition was approved by the Competition Bureau on March 25, 2015.,[9] and closed on April 13.[10]

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.[11]

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.[12][13]

In March 2018, the Competition Bureau issued a court filing accusing the two companies of structuring the deal with no-compete clauses in an effort to reduce competition in the newspaper industry, in violation of the Competition Act.[14][15]

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 The 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.[16]

Assets

Advertising

  • The Flyer Force
  • Go!Local

Publishing

Newspapers

National
Broadsheet dailies
Tabloid dailies
Free dailies
Community newspapers

Postmedia owns newspapers that serve smaller communities across Canada, including:

Magazines

Online

Software

Other properties

See also

Other media groups in Canada include:

Related articles

References

  1. ^ 2015 Annual Report (PDF), Postmedia Network Canada Corp., 2015 
  2. ^ 2015 Annual Information Form (PDF), Postmedia Network Canada Corp., 2014 
  3. ^ a b c d Olive, David (23 January 2015). "Postmedia and the heavy price it pays to survive: Olive". Toronto, ON. Retrieved 22 February 2016. 
  4. ^ "Postmedia Network Annual Information Form" (PDF). Postmedia Network Canada Corporation (Report). October 2015. Retrieved June 23, 2016. 
  5. ^ "Postmedia begins trading on TSX", Financial Post, June 14, 2011, retrieved February 21, 2016 
  6. ^ a b "Postmedia revamps Ottawa Citizen's digital service". CBC News, May 20, 2014.
  7. ^ a b c d "Postmedia buys 175-paper Sun Media for $316m". Toronto Star, October 6, 2014.
  8. ^ Competition Bureau will not challenge Postmedia’s acquisition of Sun Media. Competition Bureau, March 25, 2015.
  9. ^ "Postmedia purchase of Quebecor's Sun Media OK'd by Competition Bureau". CBC News. Retrieved 25 March 2015. 
  10. ^ "Postmedia-Sun Media deal officially closes". 
  11. ^ "Five things to know with Canada's news media industry under public policy review - CityNews Toronto". CityNews Toronto. 2016-06-21. Retrieved 2017-12-21. 
  12. ^ "Postmedia to close community newspapers in Stratford, London, St. Thomas". CBC News. Retrieved 2017-11-27. 
  13. ^ "Torstar, Postmedia swap community papers, most to close". The Globe and Mail. Retrieved 2017-11-27. 
  14. ^ "Competition Bureau's concerns over Postmedia-Torstar newspaper swap revealed in court filing". Financial Post. 2018-03-22. Retrieved 2018-04-06. 
  15. ^ "Torstar, Postmedia and the arrogance of the deal". The Globe and Mail. Retrieved 2018-04-06. 
  16. ^ "Postmedia to close more local newspapers, cut staff by 10 per cent". Ottawa Citizen. Canadian Press. June 26, 2018. Retrieved June 26, 2018. 
  17. ^ a b c d e http://business.financialpost.com/telecom/media/postmedia-and-torstar-swap-41-newspapers-most-to-close-291-jobs-lost

External links

  • Official website
  • Canada.com web portal
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