TORONTO–(BUSINESS WIRE)–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.
About Postmedia
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.
Contacts
Phyllise Gelfand
Vice President, Communications
Postmedia
(416)
442-2936
[email protected]
