Postmedia enters agreement to buy SaltWire chain of newspapers
Kevin Yarr, Victoria Walton | CBC News | Posted: July 26, 2024 2:20 PM | Last Updated: July 26
SaltWire would remain committed to local journalism, Postmedia says
Postmedia has entered an agreement to purchase SaltWire, Atlantic Canada's largest newspaper chain, according to a news release issued Friday.
SaltWire has been under creditor protection since March. It publishes more than 20 papers in Atlantic Canada, including The Chronicle Herald in Halifax, The Guardian in Charlottetown, and The Telegram in St. John's, along with associated websites.
In the release, the Canadian news media company said the potential acquisition aligns with Postmedia's commitment to preserving local journalism and supporting communities.
"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 Postmedia president and CEO Andrew MacLeod.
It was not clear from the news release whether Postmedia intends to preserve all of SaltWire's titles.
"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," the release said.
Postmedia did describe the current operations of SaltWire as unsustainable, though, and said closing the deal would require co-operation from the company's workforce.
"In order to save critical journalism jobs, we will need the support of the relevant unions to help construct a viable business model," MacLeod said.
Willy Palov is the president of the Halifax Typographical Union, CWA 30130.
We're pleased to see a buyer step forward. — Willy Palov, union president
"We're pleased to see a buyer step forward," he told CBC News in an email on Friday. "The news is still fresh, and we don't have all the details yet, so the members and I will have to review the proposed terms before we can say a whole lot more."
Ian Scott, chief operating officer for SaltWire Network, said he could not comment on the acquisition at this time.
Given ongoing financial trouble at SaltWire, Postmedia said it would like to close the deal as early as Aug. 5, and Aug. 26 at the latest.
Importance of local news
Retired journalist Gary MacDougall worked for The Guardian in Charlottetown for 47 years, including some time as managing editor. He said his initial reaction upon hearing the news was that it's both positive and negative.
"The good news is that Postmedia is a reputable national media organization, an organization that knows the business," he said.
One thing about a good old local newspaper is you pick it up and you find out what's going on locally. — Gary MacDougall, retired managing editor
MacDougall said he believes the employees of the newspapers will be grateful bankruptcies have been dodged, but said they may have concerns about their future nonetheless.
With a national company taking the helm, MacDougall said his main concern is for P.E.I. residents losing an ultra-local news source.
"It's so easy nowadays for people to live in their little media bubbles," he said. "One thing about a good old local newspaper is you pick it up and you find out what's going on locally."
Journalist Stephen Maher worked for both companies over the course of his career, having served as the Ottawa bureau chief for the Halifax Chronicle Herald from 2004-2011, and then as a national columnist for Postmedia.
Maher told CBC News he wishes the Chronicle Herald could stay in the hands of Atlantic Canadians, as it did for many decades after the Dennis family took it over in 1907.
Now, he said over Zoom, "All we can do is hope that this will help preserve journalism throughout the region."
Few cuts left to make
Maher said he doesn't expect Postmedia to cut many employees, "because I'm not sure that there's that many bodies to be cut."
He pointed to the shrinkage of newspapers not just in the Maritimes, but across North America in recent years.
"We are in an era where newspapers are not what they were. The Chronicle Herald used to have bureaus in Ottawa, in London, England, in Toronto and Montreal," Maher said.
"There's no point comparing the Chronicle Herald of 2024 to the Chronicle Herald of 1950."
But despite the fact that newsrooms are shrinking, Maher said he takes solace in the fact that there are still reputable journalists working in them.
"It's a tough kind of news today, but the Herald's still going to be published tomorrow ... and there really are some fantastic people there," he said.
"And they're not going to give up. They're going to keep doing their best to bring the news to people."