The Corporate Takeover of Canadian News Media Is Accelerating
Canada’s beleaguered news media teeters on disaster as two media behemoths prepare to merge. The merger would intensify the concentration of power in the hands of predatory capitalists and imperil unbiased journalism in the country.
Toronto Star newspapers are displayed for sale in Ontario, Canada, on July 17, 2020. (Della Rollins / Bloomberg via Getty Images)
The abysmal state of Canada news media looks set to sink to depths that even the most cynical observer would have struggled to predict. Postmedia Network, the owner of over one hundred thirty newspaper brands, recently revealed its ongoing discussions regarding a merger with NordStar Capital. The latter company owns a news chain encompassing the Toronto Star, the largest daily newspaper in Canada in terms of circulation.
This merger, primarily aimed at consolidating and reducing corporate debt, would see the further concentration of an even larger share of Canadian news media under the control of predatory capitalists. It also risks accelerating yet more job cuts to already squeezed-to-the-bone newsrooms. Furthermore, the merger would lead to the Toronto Star, widely seen as Canada’s last remaining liberal-leaning national newspaper, being jointly owned by Postmedia. In recent years, Postmedia publications has faced increasing pressure to espouse staunchly right-wing editorial positions and unwaveringly endorse the Conservative Party during federal elections.
Consolidation and Corporate Debt
Postmedia announced the nonbinding talks on June 27, following what it described as “unusual trading activity.” According to Postmedia’s statement, NordStar would have 50 percent control and 44 percent economic interest in the yet-to-be-named merged entity, and Postmedia shareholders would have 50 percent control and 56 percent economic interest. Tacitly acknowledging the divergent editorial leanings of Postmedia publications and the Star, the statement offered assurances that “the Toronto Star would maintain its editorial independence from the merged entity through the incorporation of a new company.”
This article is for subscribers only. Please login or subscribe to access our full archives and beautiful print and digital magazine starting at just $3 a month.