News giants may merge
The Canadian Press – Jun 27, 2023 / 2:43 pm | Story: 434034
Photo: The Canadian Press
A security guard stands by the front reception desk at Postmedia’s Toronto headquarters on March 12, 2018. THE CANADIAN PRESS/Chris Young
Postmedia Network Canada Corp. says it is in talks to merge with Nordstar Capital LP, the owner of Metroland Media Group and the Toronto Star.
The publisher says the proposed merger would see an even division of voting rights between the two companies, while Postmedia shareholders would hold a 56 per cent economic interest and Nordstar would hold a 44 per cent interest.
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.
Postmedia says the discussion to consider a combination is so far non-binding and there is no guarantee a deal will be reached.
The proposal would see the Toronto Star maintain editorial independence through the incorporation of a new company that would manage its editorial operations.
Postmedia says the deal would involve converting some of its outstanding debt to equity, resulting in “significant economic dilution” to existing shareholders.
