Tag Archives: Postmedia

| Media

Postmedia reaches deal to acquire Saltwire Network assets

The announcement this morning that Postmedia (my employer) had reached a deal to acquire “certain” Saltwire Network assets didn’t surprise me. Not because I’m privy to confidential negotiations by senior executives at my company, but because the deal makes sense considering Postmedia’s recent dealings.

The announcement is light on details — it doesn’t specify which assets, a purchase price, whether debt will be assumed, etc. But it presumably includes Saltwire’s news outlets in Nova Scotia, Prince Edward Island and Newfoundland and Labrador, which would expand Postmedia to nine provinces (it would be 10 but it just sold its assets in Manitoba).

The deal is not guaranteed. Closing conditions include “satisfactory outcomes with unions and other stakeholders” and court approval. But there aren’t a lot of people buying newspaper chains these days. Unless some rich person wants to own some money-losing local papers (there were “several” non-binding letters of intent, but we don’t know how serious they were), the only alternative to Postmedia might be a shutdown.

The acquisition follows other expansion moves by Postmedia, including the acquisition of Brunswick News in 2022 and an attempted but failed merger with Torstar in 2023. Postmedia also already has had some dealings with Saltwire, including for content sharing.

When Saltwire filed for creditor protection in March, the writing was on the wall. Because of its insolvent state, the sale could progress quickly. Postmedia wants key conditions satisfied by Aug. 5 so the deal can close by Aug. 26.

| Media

Postmedia/Torstar deal results in almost 300 jobs lost as dozens of newspapers shut down

It’s been a while since we had news about triple-digit job cuts. Today’s news is that Postmedia (my employer) and Torstar have come to an agreement where they swap dozens of newspapers and shut most of them down.

No cash is being exchanged in the transaction.

Most of the newspapers going either way are Ontario-based community publications, but there are four major-market free dailies affected: Metro Ottawa, Metro Winnipeg, 24 Hours Toronto and 24 Hours Vancouver. All will close.

J-Source reports that Postmedia’s closing of ex-Torstar papers will result in 244 job losses. Torstar’s closing of ex-Postmedia papers will lay off another 46, for a total of 290.

Competition Bureau approval is not required for the transaction, the companies say, so there’s no government regulatory step required for the deal. The bureau did nothing to stop the deal between Postmedia and Quebecor that saw major-market dailies come under the same roof. Nevertheless, the bureau says it will review the deal after the fact.

Unifor has unsurprisingly condemned the shutdown.

As bad as the news is, and as many communities are losing local coverage, the deal won’t be cutting the last local paper out of most communities. Many are community papers covering parts of cities that have a daily, or competed directly with another newspaper being kept. Exceptions are the tiny town of St. Marys, near London, and Meaford, near Owen Sound.

There’s also Barrie and Northumberland, which lose dailies but are still covered by weeklies.

More coverage and reaction from:

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| Media

Postmedia to cut another 20% of its workforce as losses escalate

Postmedia, my employer, posted its year-end financial results today, which includes a $100-million quarterly loss and a bunch of other numbers that don’t look good.

For those who don’t have a financial stake in Postmedia, these numbers may not matter to you. But more significant for people in the media industry is the company’s response: It wants to cut its total payroll by 20%. After implementing changes over the past year, including staff reductions, that reduced its operating expenses by $75 million a year, it’s doing the same again, cutting a fifth out of its $361-million payroll.

Assuming the cuts are evenly spread, this would mean Postmedia losing about 800 of its 4,000 employees at newspapers including the National Post, Montreal Gazette, Toronto Sun, Calgary Herald, Edmonton Journal, Vancouver Sun/Province and lots of smaller papers.

The company plans to do this in part through a voluntary buy-out program, which means I may lose some more colleagues. And I’m not 100% reassured that my own job is safe.

This is only the latest triple-digit staff reduction to come to a Canadian media giant in the past decade. Bell, Rogers, Quebecor, CBC and others have also made significant cuts, which increases the supply of journalists in the marketplace and makes it harder for others, particularly young people, to find jobs in the field.

The CWA union, representing many Postmedia employees, is urging the government to take action, and presumably order Postmedia broken up.

More coverage in the Postmedia-owned Financial Post, or The Canadian Press.

| Media, Navel-gazing

Another sad day at Postmedia

I don’t have much to say about the announcement Tuesday that Postmedia is cutting more than 90 jobs, particularly in Edmonton, Calgary and Ottawa, the three markets where it owns both subscription daily newspapers.

Not because it’s not important. But because (a) Postmedia is my employer, which puts me in a conflict of interest, (b) I don’t have anything really to add that hasn’t been written by the Globe and Mail and others, and (c) aside from the details, it’s the same story that has been written about double-digit and triple-digit layoffs at large media companies over the past decade.

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| Media, Opinion

Death to unsigned editorials

A lot has been said about newspaper endorsements just prior to Monday’s federal election.

As we now know, the Globe and Mail bizarrely endorsed the Conservative Party of Canada but not its leader, leading to mockery online. And Postmedia, my employer, ordered its newspapers to write editorials endorsing the Conservatives. That decision led to spiking an Andrew Coyne column that would have argued differently, and Coyne resigning as comment page editor for the National Post.

Despite what the editorials in question say, there are some serious questions that can be asked about why so many mainstream media outlets are openly calling for the re-election of a government that has been so hostile and unhelpful toward the media during its last mandate.

But even then, it doesn’t bother me so much that newspapers endorsed the Conservatives. (They’ve been doing that for a few election cycles now.) What bothers me is that the endorsements happened under the cover of anonymity.

It wasn’t until the Globe and Mail got Postmedia CEO Paul Godfrey to confirm it that it was clear the order came from up top, that the editorials represented the positions not of the individual papers’ editors-in-chief, or publishers, or editorial boards, or collective of journalists, but of executive management of the parent corporation. The fact that each newspaper wrote their own editorial (except the Sun Media papers, which ran a common one) seemed, frankly, deceiving.

Even I didn’t know who made the call on this. And I work there.

And it’s not just Postmedia. Last year, the Globe and Mail overruled its own editorial board, switching an endorsement from the Ontario Liberals to one of the Progressive Conservatives.

If the editorials had carried the boss’s byline, or a line that said the endorsements were the position of executive management, at least it would have been clear. Everyone would have had all the information needed to evaluate the endorsements’ value. And they would be evaluated based on their content and source, not the process used to get them published.

Without that information, we’re left with opinions whose sources are unclear. We are in effect granting anonymity to the source of an opinion piece, one with the power of the newspapers’ reputations behind it.

I’m not outraged, but I am disappointed. Despite all the challenges, despite all the changes that have caused quality to suffer, despite all the decisions made that I’ve disagreed with, I remain proud of the work I and my colleagues do at the Montreal Gazette, and will continue to defend it against those who say it’s worthless. And the Globe and Mail’s reputation remains excellent, as do many other papers caught up in this.

Because I know this isn’t about “evil corporate media”. It’s a lot more complicated than that. While there was outrage over front-page advertisements that banked on newspapers’ reputations to try to sway the election (The Gazette wasn’t one of those papers, it had a Linen Chest wrap that day), Postmedia has taken steps to make it clearer to readers how advertisers are influencing their content. Advertorial content is clearly disclosed, and generally uses a different layout style and fonts than editorial content. Where there’s a possibility of confusion, there’s a note saying the story was written by the advertising department instead of the newsroom.

Newspaper election endorsements are such a silly issue to me. When was the last time your mind was changed on something because of an unsigned newspaper editorial? And yet it seems to be the only time when upper management at Postmedia, the Globe and other papers seem to care enough to impose their will on editorial boards.

So I say death to unsigned editorials in newspapers. If the CEO or publisher or whomever wants to veto an editorial board’s decision and issue an election endorsement, let that person have the courage to put his or her own name on it.

And that goes for all other editorials, too. If it’s a collective decision of the editorial board, list their names. If it’s the publisher, put the publisher’s photo next to it and email address underneath. That would also have the effect of better shielding journalists from the public’s blame for those editorials.

“As far as we’re concerned, if you’re the editor, you support the editorial position of the newspaper,” Godfrey is quoted as saying in the Globe and Mail article.

I’m with Coyne on this. It’s not wrong for colleagues to disagree on things. It’s not wrong for the media to publish opinions they disagree with. In fact, these things should be encouraged. Because employer-enforced groupthink isn’t how society progresses.

But this isn’t the hill I’m going to die on. Because I can work for people I disagree with.

| Media

Postmedia throws in the towel on page-designed tablet apps

A final one-page edition of the Montreal Gazette iPad app asks people to download the old app instead.

A final one-page edition of the Montreal Gazette iPad app asks people to download the old app instead.

As traditional media, and newspapers in particular, attempt to deal with the rapidly changing technological universe by overhauling their business models, many experiments are being tried out. Some are successful, some are spectacular failures, and most fall somewhere in between.

It’s normal in a period of experimentation chaos that some of those experiments fail. And it’s with that mindset that Postmedia announced this week it is pulling the plug on new tablet applications it launched with the Ottawa Citizen, Montreal Gazette and Calgary Herald, instead reverting to an old application that provides a standardized template for every story, which it simply pulls automatically from the website.

The apps offered evening editions of content from each newspaper, including some national and international news that was done centrally for all three. The original plan was for every Postmedia local paper to get a similar app when it was “reimagined”.

Like the apps from La Presse and the Toronto Star, the “2.0” Postmedia apps involved a lot of work. A professional designer created each page (and most stories were told over multiple pages), which mixed photos, video, animations, graphics and all sorts of other multimedia and interactive elements to create a rich, visually appealing environment.

At its peak, the Gazette iPad app had seven people working on it exclusively full-time, including all of its designers. It was a significant investment (though nowhere near what La Presse or the Star are doing) at a time when otherwise the company was cutting back hard.

In the end, the audience — and advertising revenue — the app generated wasn’t sufficient to keep it going. When it came to Edmonton’s turn to reimagine itself on four platforms, the plan for a new tablet app was ditched. Instead, it would continue to use an older app that was fed stories automatically from the website without the need for human intervention.

The change in the tablet app was reflected in a change in strategy on another platform as well. A smartphone app in which each story was specifically written (or, more accurately, edited) for that platform also changed direction. The Edmonton Journal’s new app is a hybrid, offering some custom smartphone-friendly stories and others that are fed automatically from the website. The other newspapers’ apps will follow its lead, unless there’s another change in strategy before then.

Both tablets and smartphones can also still use the newspapers’ websites, which are responsive and readable on those platforms. The fact that so many of them choose that option is another reason for the change.

Postmedia, like Torstar, Gesca and others, is experimenting. In the big picture, it’s a good thing. But when something of such quality fails, and especially when it’s not clear why (though everyone has their theories), it’s no less sad and frustrating.

I’ll miss you, pretty app.

| Media

Postmedia to buy Sun Media’s English papers/websites for $316 million (if the Competition Bureau agrees)

I just woke up, and I’m still not sure I’m entirely conscious because I’m seeing that Postmedia (my employer) is buying Sun Media’s English newspapers — a total of 175 of them — and digital assets like Canoe.ca for $316 million. (Postmedia press release, Quebecor press release)

The transaction would have to go through the Competition Bureau, which quickly issued a statement saying it will examine the transaction (as it would for any transaction of this type).

The transaction includes the big Sun papers in Toronto, Ottawa, Winnipeg, Calgary and Edmonton, plus the 24 Hours papers in Toronto and Vancouver, the London Free Press, and a lot of community newspapers.

The transaction does not include the Journal de Montréal or any other French-language papers. It also does not appear to include the Sun News Network, which will make for an interesting situation there because of how that network and the Sun are tied together.

This deal follows another in which Quebecor sold its Quebec community newspapers to Transcontinental for $75 million. Both appear to be a way to shed legacy assets and build up cash to strengthen Quebecor’s position as a telecom company and potential national wireless player.

The Competition Bureau also reviewed the Transcontinental transaction and concluded that, where competing papers were acquired, an offer to sell one had to be made. That eventually led to the sale of 14 of them.

If I had to guess, I’d say this situation would be similar. The Bureau probably won’t allow the two major paid dailies in cities like Ottawa, Calgary and Edmonton to be owned by the same company, and would force Postmedia to sell them (or their existing broadsheets). Similarly for areas where both have community papers. And in Vancouver, where it would own three of four papers, and Toronto, where it would own three of six, it might be forced to make sales there too.

And breaking up the Sun chain sounds like it would be a disaster. Those newspapers share a lot of resources, not to mention branding. So it’s hard to see the Ottawa/Toronto/Winnipeg/Calgary/Edmonton Sun not ending up with the same owner.

We’ll see how it works out. The Transcontinental/Quebecor deal took almost a year to work through the system, and I suspect it will probably be next summer before we know who owns what as a result of this.

The $316-million value is about 1/5 of what Quebecor paid for Sun Media ($989 million in 1999) and Osprey Media ($576 million in 2007) to acquire those newspapers, though subsequent moves means there are some adjustments to that comparison.