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Postmedia Enters Agreement to Acquire Saltwire
Postmedia Network Inc., a wholly owned subsidiary of Postmedia Network Canada Corp. (“Postmedia” or the “Company”) today announced that it has entered into an agreement to acquire certain businesses and assets of Saltwire Network Inc. and The Halifax Herald Limited (together, “Saltwire”), Atlantic Canada’s largest media company, which is currently under Companies’ Creditors Arrangement Act (“CCAA”) protection. This potential acquisition aligns with Postmedia’s commitment to preserving local journalism and supporting the communities it serves.
Commitment to Preserving Local Journalism
Local journalism is essential for keeping communities informed and connected. Saltwire, with over a dozen media titles, plays a crucial role in this regard. “If the transaction can be completed, Postmedia intends to provide the necessary back office resources and operational infrastructure to ensure there continues to be reliable and high-quality local news provided to the affected communities,” said Andrew MacLeod, President and Chief Executive Officer of Postmedia.
Readers would continue to enjoy stories reported by local journalists, supported by the voices and opinions that Canadians across the country rely on for information, diverse perspectives, and unique insights into national and international developments.
Ensuring Long-Term Viability
This acquisition is crucial for the long-term sustainability of this important regional network, which faces an uncertain future without intervention. “Saltwire filed for CCAA protection after years of financial difficulties, underscoring that its current operational model is unsustainable. In order to save critical journalism jobs, we will need the support of the relevant unions to help construct a viable business model,” Mr. MacLeod said.
The potential acquisition is subject to various conditions, including satisfactory outcomes with unions and other stakeholders, the completion of definitive transaction documentation, and court approval. Given the ongoing financial pressure, it is imperative that key conditions be satisfied by August 5, with an outside close date of August 26.
“We urge all stakeholders, including employees and community leaders, to support our efforts. The future of local journalism in the Atlantic provinces depends on everyone’s cooperation in a successful restructuring,” Mr. MacLeod said.
About Postmedia Network Canada Corp.
Postmedia Network Canada Corp. (TSX:PNC.A, PNC.B) is the holding company that owns Postmedia Network Inc., a Canadian newsmedia company representing more than 130 brands across multiple print, online, and mobile platforms. Award-winning journalists and innovative product development teams bring engaging content to millions of people every week whenever and wherever they want it. This exceptional content, reach and scope offers advertisers and marketers compelling solutions to effectively reach target audiences Our expertise in home delivery and expanding distribution network powers Postmedia Parcel Services. For more information, visit www.postmedia.com,
www.postmediasolutions.co
