2014.10.06
CWA Canada calls Postmedia-Quebecor deal ‘troubling, puzzling’
Postmedia’s plan to buy all 175 English-language Sun Media newspapers from Quebecor for $316 million is “hopeful, troubling and puzzling,” said Martin O’Hanlon, president of CWA Canada, which represents workers at publications owned by both chains.
"On the optimistic side, we hope this means Postmedia will put more money into quality journalism, especially at Sun Media where journalism has been on life support under Quebecor," O'Hanlon said.
"But the deal sounds instant alarms over concentration of ownership, with Postmedia now holding a near monopoly on English-language newspapers in Canada."
"The debt levels at Postmedia are also a big concern. The company has been slashing costs, laying off workers, and pleading poverty for years to service a massive debt and now it borrows more money to buy Sun Media. It's a bit troubling and puzzling."
The purchase, which must pass muster with the federal Competition Bureau, will be funded by $140 million in new debt and $186 million in equity bankrolled by the company’s owners. The majority owner, at 39.05 per cent, is an American hedge fund, GoldenTree Asset Management.
CWA Canada represents workers at Postmedia dailies including The Ottawa Citizen, The Windsor Star, the Montreal Gazette and the Regina Leader-Post, as well as at these Sun Media titles that are part of the deal: Kingston Whig-Standard, Northumberland Today, Peterborough Examiner, St. Catharines Standard, Barrie Examiner, North Bay Nugget, Sault Star, Sudbury Star, and the Brantford Expositor.
For interviews or more information, contact Martin O'Hanlon (email / 613-820-8460).