Postmedia Network
Postmedia Network Canada Corp.[3] (also known as Postmedia Network, Postmedia News or Postmedia) is a Canadian media conglomerate[4] consisting of the publishing properties of the former Canwest, with primary operations in newspaper publishing, news gathering and Internet operations. It is best known for being the owner of the National Post and the Financial Post. The company is headquartered at Postmedia Place, located on Bloor Street of Toronto.[5]
| Type | Public |
|---|---|
| TSX: PNC.A, PNC.B | |
| Industry | Mass media |
| Predecessor | Canwest |
| Founded | July 13, 2010 |
| Headquarters | 365 Bloor Street East Toronto, Ontario M4W 3L4 |
| Products | Newspapers, Media Websites, News Content |
| Revenue | $619.6 million CAD (2019)[1] |
| Owner |
|
Number of employees | 2,006[2] |
| Website | postmedia |
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]
Postmedia is currently 66% owned by American media conglomerate Chatham Asset Management.[7]
History
The ownership group was assembled by National Post CEO Paul Godfrey[8] in 2010 to bid for the chain of newspapers being sold by the financially troubled Asper family's 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.[8] The group completed a $1.1 billion transaction to acquire the chain from Canwest on July 13, 2010.[8]
On October 6, 2014, Postmedia's CEO Godfrey announced a deal to acquire the English-language operations of Sun Media.[8][9] The purchase received regulatory approval from the federal Competition Bureau on March 25, 2015,[10] 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.[9] 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.[9] The purchase did not include Sun Media's now-defunct Sun News Network.[9] The acquisition was approved by the Competition Bureau on March 25, 2015,[11] and closed on April 13.[12]
Margo Goodhand, a former Edmonton Journal editor-in-chief, wrote in a 2016 Walrus article that Postmedia executives were behind outsourcing of Postmedia content to produce “Regina Leader-Post sports pages, Arts fronts for the Montreal Gazette, editorial pages for the Vancouver Sun” to a site within an office in Canada.[13][14]
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.[15]
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.[16][17]
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.[18][19]
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 Pembroke 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.[20]
On November 27, 2018, The Competition Bureau applied for a court evaluation contesting Postmedia's claims of solicitor-client privilege, for records seized by the bureau during raids at the company's offices.[21]
In June 2019, Kevin Libin, the National Post and Financial Post comments editor and editorials editor and a founding editor of Western Standard, was assigned “executive editor of Postmedia politics".[4] The role focuses on coverage for federal politics in the Post. In addition, it focuses on coverage of federal and provincial politics within all of the dailies owned by Postmedia.[13]
In November 2019, Postmedia announced[22] that 66% of its shares were now owned by Chatham Asset Management, an American media conglomerate which owns American Media, Inc., and is known for its close ties to the Republican party.[23]
In a 2020 article by The New York Times,[24] it was reported that journalists had attested that since Chatham Asset Management had taken over, Postmedia had centralized operations and cut staff so that its 106 newspapers are basically clones of one another.
On February 17, 2022, Postmedia announced a definitive agreement to acquire Brunswick News Inc. (BNI). As well as several New Brunswick daily and weekly newspapers and "digital properties", BNI's assets included a parcel delivery business and "proprietary distribution software".[25]
In 2023, Postmedia announced it would be moving a dozen of its Alberta community papers to digital-only platforms, aiming for more outsourcing deals and laying off employees. The announcement was made January 18, 2023, during an internal memo to staff that was obtained by The Canadian Press, describing the measures as a part of a “transformation plan geared toward managing costs.” Later the same day, the newspaper publisher said it has also sold the Calgary Herald building for $17.23 million to U-Haul Co. after trying to sell it for nearly a decade.[26]
Operating Branch
Postmedia News is the "news" branch of Postmedia Network, providing similar content to all of its subsidiary news outlets and websites. It is identified as a source on all of its subsidiary newspapers.[27] The news agency provides news, sports, entertainment, photography, financial and feature information and data to Postmedia Network's Canadian newspapers, online properties and a number of third party clients in Canada and the United States.[citation needed]
Pandemic Shutdown
During the pandemic, Postmedia laid off approximately 80 employees and permanently closed 15 community publications while navigating the financial strain of COVID-19. While the company utilized government subsidies, they claim they were unable to offset the decline in revenue.[28]
Postmedia closed 15 community newspapers in Manitoba and Ontario’s Windsor-Essex area as the publications were no longer financially sustainable.[28]The publications included Manitoba’s Altona Red River Valley Echo, Carman Valley Leader, Gimli Intertake Spectator, Morden Times, Selkirk Journal, Stonewall Argus & Teulon Times, Winkler Times, and The Prairie Farmer, leaving Portage La Prairie as the company’s community presence in the province.[28]For Ontario, the closures included the Kingsville Reporter, Lakeshore News (Windsor-Essex area), LaSalle Post, Napanee Guide, Paris Star, Tecumseh Shoreline Week, and Tilbury Times.[28]
Controversies
The creation of the Postmedia Network effectively concentrates more than 90 percent of all Canadian dailies and weeklies in one company, a fact lamented by J-Source, a Canadian media watchdog, in a 2015 online article.[29]
In 2016, Godfrey took a $900,000 bonus during a time that Postmedia laid off staff company-wide.[30] Also during that time, CFO Doug Lamb received $450,000, COO Andrew MecLeod $425,000, legal and general counsel Jeffrey Harr $300,000, and then National Post president Gordon Fisher $200,000. Unions representing Canadian journalists wanted the Postmedia executives to reject the total $2.275 million as the newspaper chain continued to cut staff.[31]
In October 2018, it was reported that CEO Andrew MacLeod had declared the company "insufficiently conservative." That resulted in Kevin Libin, who had played an active role in defeating a union drive at the paper earlier that year,[32] taking charge of all political reporting and analysis in Postmedia newspapers to ensure the newspapers became more "reliably conservative."[33]
Assets
Advertising
- The Flyer Force
- Go!Local
Publishing
Broadsheet dailies and weeklies
- National Post
- Financial Post (administratively part of the National Post)
- Belleville Intelligencer
- Brantford Expositor
- Calgary Herald
- Cornwall Standard Freeholder
- Edmonton Journal
- Kenora Daily Miner and News
- Kingston Whig-Standard
- London Free Press
- Montreal Gazette
- North Bay Nugget
- Ottawa Citizen
- Regina Leader-Post
- The StarPhoenix (Saskatoon)
- Sault Star
- Sudbury Star
- Timmins Daily Press
- The Vancouver Sun (not related to the tabloid Sun newspapers also owned by Postmedia)
- Windsor Star
Tabloid dailies
Community newspapers
Postmedia owns newspapers that serve smaller communities across Canada, including:
- Airdrie Echo (tabloid)
- Bow Valley Crag & Canyon (tabloid)
- Brockville Recorder and Times (broadsheet)
- Chatham This Week (tabloid)
- Clinton News-Record (tabloid)
- Cochrane Times (Alberta) (tabloid)
- Cochrane Times-Post (tabloid)
- Cold Lake Sun (tabloid)
- Drayton Valley Western Review (tabloid)
- Edson Leader (tabloid)
- Elliot Lake Standard (tabloid)
- Fort McMurray Today (tabloid)
- Fort Saskatchewan Record (tabloid)
- Goderich Signal-Star (tabloid)
- Grande Prairie Daily Herald-Tribune (tabloid)
- Hanna Herald (tabloid)
- High River Times (tabloid)
- Hinton Parklander (tabloid)
- Kincardine News (tabloid)
- Kingston This Week (tabloid)
- Lakeshore Advance (Grand Bend; tabloid)
- Lloydminster Meridian Booster (tabloid) sold to Lloydminster Source Ltd
- Mid-North Monitor (Espanola; tabloid)
- Mayerthorpe Freelancer (tabloid)
- Nanton News (tabloid)
- Owen Sound Sun Times (broadsheet)
- Peace River Record-Gazette (broadsheet)
- Pincher Creek Echo (tabloid)
- Red River Valley Echo (tabloid) closed 2020
- Sherwood Park News (tabloid)
- Simcoe Reformer (tabloid)
- St. Thomas Times-Journal (tabloid)
- Stratford Beacon Herald (broadsheet)
- Vulcan Advocate (tabloid)
- Vermilion Standard (tabloid)
- Whitecourt Star (tabloid)
- Winkler Times (tabloid)
- Woodstock Sentinel-Review (broadsheet)
Former assets
- 24 Hours (Toronto, Vancouver) sold to Torstar and closed, 2017[34]
- Barrie Examiner (sold to Torstar and closed, 2017)[34]
- Bradford Times (tabloid) sold to Torstar and closed, 2017[34]
- Camrose Canadian (tabloid), closing 2018
- Collingwood Enterprise Bulletin sold to Torstar and closed, 2017[34]
- Niagara Falls Review (broadsheet) sold to Torstar, 2017
- Norwich Gazette, closing 2018
- Orillia Packet & Times (broadsheet) sold to Torstar and closed, 2017[34]
- Pembroke Daily Observer (broadsheet), ceasing print edition 2018
- Peterborough Examiner (broadsheet) sold to Torstar, 2017
- St. Catharines Standard (broadsheet) sold to Torstar in 2017
- Strathmore Standard (tabloid), closing 2018
Magazines
- Financial Post Business
- Living Windsor
- Muskoka Magazine
- Kingston Life Magazine
- Interiors Magazine
- Backpack Magazine
- Cannabis Post
- Muskoka Visitor Guide
- Ontario Farmer Magazines (Hog, Beef, Dairy)
- Swerve
- TVtimes
Online
- Canada.com
- Infomart.com
- celebrating.com
- connecting.com
- driving.ca
- househunting.ca
- remembering.ca
- shoplocal.ca
- SwarmJam.com
In addition, Postmedia Network owns all websites associated with all properties listed on this page either wholly or in partnership.
Software
- QuickTrac
- QuickWire
See also
Other media groups in Canada include:
Related articles
References
- ^ "Postmedia Fiscal 2020 Q1 financial report" (PDF). section 14
- ^ 2021 Annual Information Form (PDF), Postmedia Network Canada Corp., 2021
- ^ "Federal Corporation Information". Corporations Canada. Retrieved May 28, 2020.
- ^ a b "You Must Be This Conservative To Ride: The Inside Story of Postmedia's Right Turn". www.canadalandshow.com. Retrieved August 12, 2019.
- ^ "Contact Us | Postmedia". www.postmedia.com. Retrieved October 26, 2022.
- ^ a b "Postmedia revamps Ottawa Citizen's digital service". CBC News, May 20, 2014.
- ^ "Postmedia Fiscal 2020 Q1 financial report" (PDF). on page 15 under 'Related Party Transactions'
- ^ a b c d Olive, David (January 23, 2015). "Postmedia and the heavy price it pays to survive: Olive". Toronto, ON. Retrieved February 22, 2016.
- ^ a b c d "Postmedia buys 175-paper Sun Media for $316m". Toronto Star, October 6, 2014.
- ^ Competition Bureau will not challenge Postmedia’s acquisition of Sun Media. Competition Bureau, March 25, 2015.
- ^ "Postmedia purchase of Quebecor's Sun Media OK'd by Competition Bureau". CBC News. Retrieved March 25, 2015.
- ^ "Postmedia-Sun Media deal officially closes".
- ^ a b "The new worry about the next election: your daily news - Macleans.ca". www.macleans.ca. Retrieved January 1, 2020.
- ^ Goodh, Margo (February 4, 2016). "Above the Fold". The Walrus. Retrieved January 1, 2020.
- ^ "Five things to know with Canada's news media industry under public policy review - CityNews Toronto". CityNews Toronto. June 21, 2016. Retrieved December 21, 2017.
- ^ "Postmedia to close community newspapers in Stratford, London, St. Thomas". CBC News. Retrieved November 27, 2017.
- ^ "Torstar, Postmedia swap community papers, most to close". The Globe and Mail. Retrieved November 27, 2017.
- ^ "Competition Bureau's concerns over Postmedia-Torstar newspaper swap revealed in court filing". Financial Post. March 22, 2018. Retrieved April 6, 2018.
- ^ "Torstar, Postmedia and the arrogance of the deal". The Globe and Mail. Retrieved April 6, 2018.
- ^ "Postmedia to close more local newspapers, cut staff by 10 per cent". Ottawa Citizen. Canadian Press. June 26, 2018. Retrieved June 26, 2018.
- ^ "Torstar (Again) Blocks Release of Evidence in Conspiracy Case". The Tyee. Retrieved March 4, 2019.
- ^ "Postmedia Fiscal 2020 Q1 financial report" (PDF). section 14
- ^ "Behind Trump Tabloid King, a Connected and Flush Hedge Fund". Bloomberg. August 30, 2018. Retrieved February 15, 2020.
- ^ "Under Hedge Fund Set to Own McClatchy, Canadian Newspapers Endured Big Cuts".
- ^ "Postmedia to Acquire Brunswick News Inc. and Extend Maturity of its First and Second Lien Notes". Postmedia. February 17, 2022. Retrieved February 18, 2022.
- ^ Deschamps, Tara (January 18, 2023). "Postmedia announces plan to move 12 Alberta papers to digital-only, layoff staff". Retrieved January 19, 2023.
- ^ "Postmedia News | National Post". National Post. National Post. Retrieved October 24, 2020.
- ^ a b c d Sagan, Aleksandra (April 28, 2020). "Postmedia to lay off 80, permanently close 15 newspapers amid coronavirus fallout". Toronto CityNews. Retrieved January 11, 2023.
- ^ "Diversity of Media Ownership Literally Non-existent in Canada". Retrieved August 16, 2019.
- ^ "Postmedia executives receive $2.3-million in retention bonuses". Retrieved August 16, 2019.
- ^ Woodhouse, Kristin (November 24, 2016). "Unions demand Postmedia executives reject $2.3 million in bonuses". vancouver.citynews.ca. Retrieved January 18, 2023.
- ^ "How Postmedia Defeated A Union Drive At The National Post". CANADALAND. Retrieved October 23, 2020.
- ^ "Postmedia's employees should stand up to their right-wing bosses". National Observer. Retrieved October 23, 2020.
- ^ a b c d e Telecom; Media (November 27, 2017). "'The alarm bells should go off:' Postmedia, Torstar deal will see 36 community papers closed - Financial Post".
External links
- Official website
- Canada.com web portal