TORONTO — Canadian newspaper publisher Postmedia Network Canada Corp. announced Monday that it is buying 175 newspapers and publications in a major consolidation of print media in Canada.
It is paying 316 million Canadian dollars ($283 million) to Quebecor Media Inc. for Sun Media Corp.’s English-language operations. That includes the Sun chain of daily newspapers in Toronto, Ottawa and Calgary and Sun’s digital platforms.
Postmedia already has one of Canada’s largest chains of daily newspapers including the National Post and dailies in Montreal, Ottawa, Calgary and Vancouver. It has been losing millions in recent quarters.
Quebecor chief executive Pierre Dion said the Canadian newspaper business needs consolidation to remain viable and to compete with digital media and noted newspaper revenues have been declining year by year.
Postmedia chief executive Paul Godfrey said he doesn’t consider other newspapers competitors. He said Google, Facebook and Twitter are swallowing digital revenue from Canadian media companies.
“Competing with behemoths of the digital world requires a greater and more compelling offering to marketers that rival foreign players,” Godfrey said.
The sale is subject to approval by Canada’s Competition Bureau.
Godfrey said both newspapers organizations could flounder if there’s no deal.
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