Quebecor sells Sun Media English newspapers to Postmedia

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Quebecor sells Sun Media English newspapers to Postmedia

Postby Dave L » Mon Oct 06, 2014 6:37 am

http://www.cbc.ca/news/business/quebecor-sells-sun-media-english-newspapers-to-postmedia-1.2788693

Much of the purchase price will be financed by a mix of $140 million in new debt, plus $186 million of new equity, to be bought by Postmedia's existing owners.

"In order to survive and compete against the largest foreign-based digital businesses, we must be strong enough to fight and win," Postmedia president Paul Godfrey said. "And collectively, this stable of strong brands can do just that. When the transaction is approved, we will be able to offer advertisers the opportunity to reach the full scale and scope of their target audiences with a Canadian option for their marketing programs."
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Re: Quebecor sells Sun Media English newspapers to Postmedia

Postby jon » Mon Oct 06, 2014 9:20 am

“We intend 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” (Paul Godfrey, President and Chief Executive Officer of Postmedia)

Nothing from Quebec, not even English language holdings, are included in the deal.
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Re: Quebecor sells Sun Media English newspapers to Postmedia

Postby Tom Jeffries » Mon Oct 06, 2014 12:46 pm

I wonder if they cut the sell price, given that advertising revenue in print, have fallen off the table. Radio, it's worse.

This sale was Quebecor dumping assets that are not core.

Cash is where to be now, and in the next few months, it should be fascinating to see how the landscape keeps evolving.
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Re: Quebecor sells Sun Media English newspapers to Postmedia

Postby czarcasm » Mon Oct 06, 2014 1:29 pm

The money for Postmedia outside of the "Sun" papers in major cities, will be the revenue generated in the smaller market weeklies whose bread and butter is flyers.

Some local news, some local ads and lots of weekly flyers.

Kind of like secondary market radio these days. A Morning show, some local news, some local ads and Satellite programming from 10AM til 6AM.
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Re: Quebecor sells Sun Media English newspapers to Postmedia

Postby groundskeeper willy » Mon Oct 06, 2014 1:57 pm

While I haven't read anything relating to it so far, I would assume that Quebecor honcho Pierre Karl Péladeau's political aspirations were the number one driving factor behind the sale, and not just the fact that they were able to find somebody who actually wanted to buy the assets. As a now-sitting member for the Parti Quebecois in the National Assembly, PKP came under some harsh criticism during the election for the scope of Quebecor's holdings (party hardliners couldn't rationalize a separatist politician having extensive business holdings in English Canada). This divestiture solidifies his empire to just la belle province and should help to firm up his credibility as a Parti politician.
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Re: Quebecor sells Sun Media English newspapers to Postmedia

Postby slowhand » Mon Oct 06, 2014 2:28 pm

That may also explain why Quebecor-owned Videotron seems to have given up on their plan to buy spectrum and create a mobile network across the country to become the so-called 4th player.
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Re: Quebecor sells Sun Media English newspapers to Postmedia

Postby jon » Wed Mar 25, 2015 7:55 am

Postmedia Network Canada Corp gets green light to buy 173 Sun Media publications
By Claire Brownell, Financial Post
March 25, 2015 8:40 AM

The Competition Bureau has decided not to challenge Postmedia Network Canada Corp.’s proposed acquisition of 173 English-language Sun Media publications, paving the way for the creation of Canada’s largest digital news and information source.

In a release Wednesday, the independent law enforcement agency said it concluded the sale is unlikely to substantially lessen competition. It’s a decision that shows how much the media has changed – despite the fact Postmedia and the Sun currently own competing daily newspapers in major Canadian cities like Ottawa, Calgary and Edmonton, their fiercest competition for digital advertising dollars has become foreign-owned companies like Google Inc.

In a memo, Postmedia chief executive Paul Godfrey said he plans to complete the transaction in the next few weeks. “Postmedia will then be the strongest newspaper chain in Canada – a newsmedia organization with brands across four platforms ready to take on all-comers,” he said.

Postmedia announced plans to buy the Sun Media newspapers from Quebecor Inc. for $316 million in October. When the proposed acquisition was announced, there were 175 Sun Media brands involved, but one community newspaper has since closed and two publications in Fort McMurray consolidated, Mr. Godfrey said.
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Re: Quebecor sells Sun Media English newspapers to Postmedia

Postby Mike Cleaver » Wed Mar 25, 2015 4:13 pm

Just what we need.
More media concentration under fewer owners.
Much easier to feed crap to the masses.
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