The Postmedia Network announced today that it will acquire Sun Media’s English-language newspapers and speciality publications—175 in all—including its flagship daily, the Toronto Sun.
The $316-million deal, which also includes the rest of the Sun chain of papers, as well as the London Free Press and the free Toronto and Vancouver dailies 24 Hours, still needs regulatory approval, including the approval of the Competition Bureau. The process is expected to take several months.
Rod Phillips, chairman of the board of PostMedia, the parent company of the National Post, says “this investment by Postmedia is a strong endorsement of the future of the Canadian newspaper industry and made-in-Canada journalism.”
The company estimates it can find cost savings in the range of $6 million to $10 million dollars a year.
Paul Godfrey is the President and CEO of Postmedia. For years he was at the Toronto Sun and various capacities including Publisher then President and CEO of Sun Media.
Agencies/Canadajournal
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This is a supreme effort to draw the incredibly profitable flyer business away from non-subscription free newspapers which are little more than wrap around the flyers and rarely offer any kind of journalism other than fluff features. It might work. Unfortunately, the Postmedia and Sun Newspapers chains don’t offer much serious journalism either. A pox on all their camps.