(Toronto) Canadian media companies Postmedia Network Canada and Nordstar Capital, owner of the Toronto Starended their discussions on a possible merger, saying they were unable to reach an agreement.
Both companies issued press releases revealing this development in this matter. Torstar noted that the additional backdrop of regulatory and financial uncertainty contributed to the talks ending.
The two companies announced in late June that they were in talks to merge in a deal that would have seen Postmedia and Metroland Media Group join forces, while the Toronto Star would have been managed by a new company.
They further claimed that the proposed deal would help them grow in order to address the “existential threat” facing the media industry.
But experts have sounded the alarm over what such a deal could mean for local news coverage and competition in journalism.
Postmedia laid off 11% of its editorial staff at the start of the year.
Torstar holds an investment in The Canadian Press under a joint arrangement with affiliates of the Globe and Mail and the daily The Press.