[LINK] "Postmedia sale complicated by unsustainable debt and sagging business model"

[rfmcdonald]

The CBC's Don Pittis reports on the grim future of Postmedia, and by extension of the Canadian newspaper industry. At best, the mass media in print might become a heritage industry. (At best.)

Reports this week that the U.S. hedge fund GoldenTree Asset Management is looking to sell its stake in the Canadian newspaper chain Postmedia may be less important than they appear. And whatever happens, a Canadian businessman will hold the balance of power.

This development does, however, shine a light on a company that many financial industry observers say is so indebted that share ownership may be a moot point.

It is the holders of the debt that matter. And it reminds us of the uncertain future for a company that owns some of Canada`s most illustrious newspaper titles less than a year and a half after it announced a merger with the Sun chain would solve its financial problems.

Some harsh name-calling between Terence Corcoran at the National Post and David Olive at the Toronto Star recently has only drawn attention to the fact that the entire print newspaper business is in trouble.

Print chains across North America have been cutting staff and titles, desperately trying to find a business model that will attract readers and replace lost ad revenue.