The biggest media company in the Maritimes is turning the page on a turbulent era, during which it managed to rack up over $90 million in debt.
Driving the news: Postmedia’s $1 million acquisition of SaltWire Network, the debt-ridden Atlantic Canada newspaper chain, has been approved. The main union representing workers agreed to soften up on some labour protections that had threatened to torpedo the deal.
- The acquisition, which was green-lit by a Nova Scotian judge yesterday afternoon, was seen as the only path that didn’t lead to most of the 20+ newspapers shutting down.
Why it matters: With declining ad revenue and a reluctance among Canadians to pay for digital news subscriptions, some experts say news publishers have been left operating without a clear business model.
- While some major Canadian publishers like the Globe and Mail have succeeded with a subscription-based model, others like SaltWire have struggled mightily.
- Since 2008, over 518 local news outlets have been shut down across Canada.
Zoom out: Meta’s decision to ban Canadian news on its platforms, one of the main drivers of readership for publishers, has cut local news outlets' social media engagement by 58% in just a year.—LA