Quebecor seeks Osprey to vault into first place
Takeover would create biggest newspaper firm
Jun 02, 2007 04:30 AM
MONTREAL–Quebecor Media Inc. says its plan to buy Osprey Media Income Fund promises bragging rights as Canada's largest newspaper publisher, but also furthers a strategy of becoming a fully integrated media giant.
"What we're looking at is the volume," Quebecor spokesperson Luc Lavoie said in an interview yesterday. "It gives us economy of scale on all aspects of production of a newspaper, from buying paper to printing to distribution to editorial content."
Purchasing the Ontario-based company would provide reach into the richest market in the country for the Quebec-based publisher, which also owns the chain of Sun Media papers, including the Toronto Sun.
Quebecor says its offer represents total equity value of $355 million.
Osprey circulates 340,000 copies from 20 Ontario dailies, or 16 per cent of the province's daily newspaper circulation, with titles such as the St. Catharines Standard, the Kingston Whig-Standard and the Sudbury Star.
But given reliance on the Internet and digital-news dissemination, a successful media company must have several developed platforms, he said.
"We strongly believe that, strategically speaking, the company that will be successful in the future ... will be a (diversified) media company, because the days when the paid print media were the dominant player setting the trend and everything are over."