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Postmedia, Toronto Star owner Nordstar end their merger discussions

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Both companies said via press releases that regulatory and financial uncertainty played a role

TORONTO — Canadian media companies Postmedia Network Canada Corp. and Nordstar Capital LP, the company that owns the Toronto Star, have ended discussions about a potential merger, saying they were unable to come to an agreement.

Postmedia president and CEO Andrew MacLeod said in a statement that the "need for creative solutions and foundational transformation in our industry remains." But experts sounded the alarm over what such a deal could do for local news coverage and for competition in journalism. Many compared it to a deal in 2017 that saw Torstar and Postmedia swap 41 community and daily newspapers, 36 of which were subsequently closed. Postmedia laid off 11 per cent of its editorial staff earlier this year in the latest sign of struggle for the national company, which owns publications across the country including the National Post, Vancouver Sun and Calgary Herald.

 

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