Canadian Press goes from co-op to private operator

News of a re-org at CP from both the Globe and CanWest suggests the venerable co-operative, supported by its members, is being bought out by its current three largest members: CTVglobemedia, Torstar and Gesca, which owns La Presse. Key to the deal is the influxion of cash, somewhere short of $10 million, federal approval to buy time to build up the pension plan, and approval from the union. CanWest reports the union isn’t happy, having already made concessions on the pension plan. This stems largely from the withdrawal a few years ago of CanWest’s group, as well as the withdrawal this month of the Sun chain. Both CanWest and the Sun started their own internal news sharing services, but neither has been able to sell it outside the company (and why would anyone want it, when they have CP? More brilliant marketing/management decisions by¬† CanWest and the Sun, the chain being supported mainly by profits from Videotron in the Quebecor empire.

Report on Business, July 4/5 2010