Postmedia Announces Strategic Investment to Bring Readers Original Content from Groundbreaking Media Startup, The Logic
TORONTO--(BUSINESS WIRE)--May 22, 2019--
Postmedia Network Inc. (“Postmedia”) and digital media outlet The Logic Inc. (“The Logic”) today announced that they have signed a non-binding letter of intent to enter into definitive agreements pursuant to which Postmedia would make a strategic equity investment for a minority position in The Logic and the two companies would partner on various initiatives including content licencing, marketing projects and events (collectively, the “Transaction”), allowing Postmedia audiences access to the in-depth analysis and ground-breaking reporting for which The Logic is known.
“The innovation economy is thriving in Canada and The Logic has tapped into the stories and insights that make it tick while demonstrating, in a very short period of time, its strength and credibility in the space,” said Andrew MacLeod, President and Chief Executive Officer, Postmedia. “Partnering with The Logic provides the opportunity to build, grow and validate digital subscription models which are showing increasing traction around the world. We believe that the combination of Postmedia’s audience reach of 14.2 million average monthly unique visitors* and marketing support along with David Skok’s expertise will allow us to accelerate opportunities through our collaboration.”
The Transaction is subject to certain closing conditions being satisfied and is expected to be completed this summer.
“I started The Logic because I believe in Canada’s future,” said David Skok, Chief Executive Officer and Editor in Chief, The Logic. “
“The Logic’s award-winning journalism sheds light on the forces driving change in our country and around the world at a time when Canadians need it most. This investment from Postmedia will allow us to reach more people, more decision-makers and allow us to be even more a part of the critical national conversation.”
*Source: Comscore, Total Canada, Jan-Mar 2019, 3-month avg.
About The Logic
The Logic launched less than a year ago, and has already staked its place in the centre of Canada’s journalism ecosystem. It has the largest team of innovation reporters in the country, its Daily Briefing has become a 4 pm must-read for decision makers, and its award-winning investigative journalists have exposed everything from Facebook’s discriminatory advertising policies (now reversed), to the price the government was expecting for selling off Canada’s airports, to the controversial deals between Toronto and Google-sister company Sidewalk Labs.
Postmedia Network Inc., a wholly owned subsidiary of Postmedia Network Canada Corp. (TSX:PNC.A, PNC.B), is a Canadian newsmedia company representing more than 140 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. For more information, visit www.postmedia.com.
This news release may include information that is “forward-looking information” under applicable Canadian securities laws. Postmedia has tried, where possible, to identify such information and statements by using words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “may,” “will,” “could,” “would,” “should” and similar expressions and derivations thereof in connection with any discussion of future events, trends or prospects or future operating or financial performance. Forward-looking statements in this news release include, but are not limited to, statements with respect to the success of a strategic partnership for both companies, both companies’ exploration of new business models and marketing opportunities and the ability to grow the digital subscription business through a collaboration of both companies. By their nature, forward-looking information and statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These risks and uncertainties include, among others: the possibility that the transactions described herein will not close (including, without limitation, as a result of failure to satisfy closing conditions); the impact of the transactions on revenue; the possibility that Postmedia is unable to recoup its investment; competition from digital and other forms of media; the ability of Postmedia to build out its digital media and online businesses; the failure to maintain current print and online newspaper readership and circulation levels; possible damage to the reputation of Postmedia’s brands or trademarks; possible labour disruptions; possible environmental liabilities, litigation and pension plan obligations; fluctuations in foreign exchange rates and the prices of newsprint and other commodities. For a complete list of our risk factors please refer to the section entitled “Risk Factors” contained in our annual management’s discussion and analysis for the years ended August 31, 2018 and 2017. Although Postmedia bases such information and statements on assumptions believed to be reasonable when made, they are not guarantees of future performance and actual results of operations, financial condition and liquidity, and developments in the industry in which Postmedia operates, may differ materially from any such information and statements in this press release. Given these risks and uncertainties, undue reliance should not be placed on any forward-looking information or forward-looking statements, which speak only as of the date of such information or statements. Other than as required by law, neither Postmedia nor The Logic undertake, and both companies specifically decline, any obligation to update such information or statements or to publicly announce the results of any revisions to any such information or statements.
View source version on businesswire.com:https://www.businesswire.com/news/home/20190522005765/en/
CONTACT: Phyllise Gelfand
Vice President, Communications
KEYWORD: NORTH AMERICA CANADA
INDUSTRY KEYWORD: COMMUNICATIONS PUBLISHING
SOURCE: Postmedia Network Inc.
Copyright Business Wire 2019.
PUB: 05/22/2019 02:32 PM/DISC: 05/22/2019 02:32 PM