Category Archives: Media

Big Wall Street Players Move Into Canadian News: A Behind the Scenes Look At the Postmedia – Sun Media Deal

Wall St. backed Postmedia bid for Sun Media sets dangerous precedent for media concentration

Wall St. backed Postmedia bid for Sun Media sets dangerous precedent for Canadian media concentration.

A bid by Postmedia Network Canada Corp. to buy 175 newspapers and online news sites from Sun Media Corp., will hand a group of mostly U.S. investors significant influence over one of the country’s largest media chains.

A behind the scenes look at the bid shows the inner workings of how financial interests, media conglomerates and powerful professional lobby groups play the media deal game in Canada.

The investors driving the media merger are a syndicate of little-known U.S. and Canadian hedge funds that specialize in buying junk bonds from struggling companies. Led by New York-based GoldenTree Asset Management LP, the funds financed the resurrection of Postmedia from a bankruptcy proceeding in 2010 by acquiring $700-million of the company’s bonds. GoldenTree and other investors, including Canadian fund Canso Investment Counsel Ltd., have agreed to buy additional bonds and securities to help finance the Sun Media purchase. Continue reading