Postmedia, Toronto Star owner Nordstar end merger talks

TORONTO –

Canadian media firms Postmedia Network Canada Corp. and Nordstar Capital LP, the corporate that owns the Toronto Star, have ended discussions a couple of potential merger, saying they have been unable to come back to an settlement.

Both firms issued press releases disclosing the change, with Torstar Corp., noting that the added backdrop of regulatory and monetary uncertainty contributed to the talks ending.

The two firms introduced in late June that they have been in talks to merge in a deal that may have seen Postmedia and Metroland Media Group mix forces whereas the Toronto Star can be managed by a brand new firm.

They had mentioned the proposed deal would assist them scale up with a view to reply to the “existential menace” going through the media trade.

But specialists sounded the alarm over what such a deal may do for native news protection and for competitors in journalism.

Postmedia laid off 11 per cent of its editorial employees earlier this 12 months.