TORONTO — Postmedia Network Inc. plans to shutter 20 community newspapers as part of a deal with Torstar Corp., a move that will result in the loss of 244 jobs.
The agreement will see to the two companies swap a number of community and daily newsapers.
The companies say the transaction is effectively a non-cash deal, as the consideration for the publications being purchased is roughly equal to that of the publications being sold.
Under the agreement, Torstar (TSX:TS.B) will acquire a total of 17 publications from Postmedia including the Barrie Examiner, Niagara Falls Review, Northumberland Today, Orillia Packet & Times, Peterborough Examiner, St. Catharines Standard and Welland Tribune. Eight weekly community publications and the free dailies 24Hours Toronto and 24Hours Vancouver are also part of the deal.
Meanwhile, Postmedia will acquire 22 weekly community newspaper properties in eastern and southern Ontario and the Metro Winnipeg and Metro Ottawa free daily publications from Torstar.
Postmedia plans to close by mid-January all of the publications except the Exeter Times-Advocate and the Exeter Weekender.
See: Torstar, Postmedia swap community papers, most to close
Also: Postmedia and Torstar swap dozens of small newspapers, most to be shut down
