Joined: 02 Mar 2009
Posts: 6758 votes: 3
Posted: Tue May 11, 2010 2:23 pm Post subject: CanWest newspapers sold for $1.1 billion to Paul Godfrey
( well i'm gald he has got them instead of Torstar which for sure would of turned them into a liberal direction like the toronto star , paul godfrey's group of investors will likely keep the papers as is in a more right of centre direction )
CanWest newspapers sold for $1.1 billion
By JOE WARMINGTON, QMI Agency
Some of Canwest's newspapers are displayed in Ottawa on January 8, 2010. Canwest Global Communications has approved the sale of its newspapers to a group led by National Post president and CEO Paul Godfrey in a $1.1 billion deal that preserves jobs and pays off the insolvent company's bankers. (THE CANADIAN PRESS/Adrian Wyld)
TORONTO - Saying "newspapers will be here 100 years from now," National Post publisher Paul Godfrey said Canadians are the big winners with his group of investors taking control of the CanWest chain of publications.
"I am absolutely thrilled at the opportunity to run the largest newspaper chain in Canada," Godfrey told QMI Agency, moments after it was announced his group's $1.1-billion bid had won the day.
The former president and CEO of Sun Media led a group to victory over bids from the Torstar Corp. and Birch Hill Equity Partners Management.
The struggling and insolvent CanWest organization has 46 newspapers including the National Post, Ottawa Citizen and Montreal Gazette, all of which are to remain open, according to a statement issued by CanWest.
One advantage Godfrey says he has is an understanding of the chain.
"I have operated it and competed against it," he said. "I know it's strengths and weaknesses and where we can take it to the future."
Saying "we were very fortunate to win it," he said it's a "great opportunity" for himself to be president and CEO of the company, but "its a win for Canadians" because the more newspaper voices the better.
"We have a group of investors who are very committed to preserving the chain," he said, adding newspapers have a bright future.
"You have to think digital, but newspapers will be here 100 years from now," he said. "Anybody who is writing off newspapers is making a big mistake."
CanWest's full-time employees will remain on the job, as well as most part-timers. The new owners will also assume all pension liabilities and other benefits for active and retired employees.
The deal is still required to be approved by the courts - that is scheduled for May 17.
Once court approval is received, the bid is targeted to close on or before July 15, 2010.
CanWest recently announced it sold its television assets to Shaw Communications.
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CanWest newspapers sold for $1.1 billion to Paul Godfrey