Torstar
Torstar Corporation is a privately held Canadian media company headquartered in Toronto, Ontario, primarily engaged in newspaper publishing with the Toronto Star as its flagship daily broadsheet, one of the largest in the country by circulation.[1][2] Incorporated in 1958 to acquire the Toronto Daily Star—originally launched in 1892—the company expanded into community newspapers, digital media, and briefly book publishing before divesting non-core assets like VerticalScope in 2021 amid print industry declines.[3][4] Taken private in 2020 by NordStar Capital for $60 million, Torstar saw ownership consolidate under Jordan Bitove in 2023 following arbitration resolving disputes with former co-owner Paul Rivett over asset sales and editorial direction.[5][6][7] The Toronto Star's editorial stance has been characterized as left-center biased, consistent with patterns of ideological slant observed in much of Canada's mainstream press, influencing coverage on political and social issues.[8][9] These internal tensions and market pressures underscore Torstar's challenges in maintaining viability while navigating criticisms of journalistic objectivity in a consolidating media landscape.[10]History
Founding and Early Expansion (1958–1980s)
Torstar Corporation was incorporated on February 6, 1958, as Toronto Star Ltd., specifically to acquire the Toronto Daily Star from the Atkinson Charitable Foundation after Ontario passed legislation in 1958 prohibiting charitable organizations from owning or controlling newspapers. The Toronto Daily Star, originally founded in 1892 as the Evening Star and renamed in 1900, was Canada's largest-circulation daily newspaper at the time, with a focus on liberal journalism under the influence of publisher Joseph E. Atkinson, who had established the Atkinson Principles to guide editorial policy emphasizing social welfare, public ownership of utilities, and opposition to militarism. Until 1975, Torstar's primary operations centered on publishing the Toronto Star (as it was restyled in 1971), alongside commercial printing services and a small portfolio of community newspapers in Ontario.[3][11] In 1977, the company officially renamed itself Torstar Corporation, reflecting its growing scope beyond the flagship newspaper. Early expansion included incremental acquisitions of local publications to bolster regional coverage, such as community weeklies in the Greater Toronto Area, which helped maintain dominance in Ontario's print media market amid rising competition from broadcasters and other dailies. By the late 1970s, Torstar began diversifying outside core journalism; in late 1975, Toronto Star Ltd. purchased a 52.5% stake in Harlequin Enterprises Ltd. for $30.6 million (Canadian), a Winnipeg-based publisher specializing in romance fiction series that had evolved from general paperbacks since 1949 into a global niche leader by leveraging direct-mail and supermarket distribution. This move marked Torstar's entry into book publishing and supplementary educational products, with Harlequin's revenues expanding from $3 million in 1970 to over $165 million by the early 1980s through international licensing in more than 25 languages and 100 markets.[3][11] The 1980s saw accelerated newspaper expansion, including Torstar's 1981 acquisition of 13 Toronto-area suburban weeklies from Thomson Newspapers, which granted control of nearly 40%—or over 600,000—of the circulation among Ontario's 88 weekly papers south of Sudbury, despite regulatory scrutiny under competition laws. Harlequin further drove non-print growth, acquiring the Silhouette romance imprint from Simon & Schuster in 1984 to capture U.S. market share and diversify into mystery and action genres, while Torstar invested in retail ventures like Scholar's Choice educational stores, opening 21 locations across North America by 1980. These steps positioned Torstar as a multifaceted media and publishing entity, with newspaper circulation stabilizing around 500,000 daily for the Toronto Star amid technological shifts like offset printing adoption in the 1960s that improved production efficiency.[12][13][3]Diversification and Growth (1980s–2000s)
During the 1980s, Torstar emphasized growth in its book publishing segment, particularly through Harlequin Enterprises, which it acquired in 1981 as the world's largest publisher of series romance fiction.[11] Harlequin expanded aggressively, achieving annual growth rates of approximately 25 percent through international distribution and product line extensions, including the 1984 acquisition of Simon & Schuster's Silhouette imprint.[11] In 1980, Harlequin further diversified by purchasing the Miles Kimball Company, a U.S.-based direct-mail marketer, to broaden beyond books into consumer goods distribution.[13] These efforts contributed to Torstar's overall revenue increase to $472.7 million in 1980 from $371.1 million the prior year, with net income rising to nearly $22 million.[13] Concurrently, Torstar expanded its newspaper holdings by acquiring 13 Toronto suburban weeklies in 1981, capturing over 40 percent of regional weekly circulation.[12] In the 1990s, Torstar pursued supplementary educational publishing as a key diversification avenue, acquiring Frank Schaffer Publications in 1994, Warren Publishing House in 1995, Tom Snyder Productions and Delta Education in 1996, and the Judy Group in 1997.[11] [3] These moves targeted children's educational software, workbooks, and multimedia, launching ventures like Brighter Vision Learning Adventures in 1997.[3] However, challenges emerged, including a $100 million loss from the 1997 sale of Troll Communications in 1999 for $69 million.[11] Torstar also ventured into magazines with the 1991 launch of eye, a weekly arts publication reaching 106,000 circulation, and secured a 50 percent stake in Sing Tao Daily's Canadian operations in 1998.[11] Early digital initiatives included Harlequin's website launch in 1996 and a partnership with Women.com Networks for e-commerce in 1999.[11] Revenues grew from $1 billion in 1995 to $1.33 billion in 1998, with operating profits doubling to $177 million; by 1998, book publishing accounted for 39 percent of revenue, supplementary education 12 percent, and newspapers 48 percent.[11] Into the early 2000s, Torstar bolstered its newspaper portfolio with the 1999 purchase of four southern Ontario dailies from Quebecor for $335 million, increasing weekly circulation to 4.67 million.[3] Digital revenues from interactive properties rose to $25.8 million in 2001 from $14.9 million in 2000.[14] Yet, the supplementary educational segment faced headwinds, leading to its divestiture in 2001 amid a $90 million loss from discontinued operations, as Torstar refocused on core publishing strengths.[15] This period marked a maturation of diversification, with Harlequin remaining a stable high-growth pillar until later sales.[11]Digital Transition and Print Declines (2010s)
In the 2010s, Torstar faced steep declines in print operations as digital media consumption disrupted traditional newspaper economics, particularly in advertising and circulation. Print advertising revenue dropped nearly $55 million, or 13%, between 2014 and 2015, driven by the migration of classified and display ads to online platforms. National advertising revenues, combining print and digital, fell 18.5% in 2015, while local advertising declined 5.9%. These pressures intensified later in the decade, with print ad revenue decreasing 13% in the fourth quarter of 2016 and 19% in the first quarter of 2017, contributing to a $24.4 million quarterly loss. By 2019, annual print advertising had shrunk 21% to $155 million compared to the prior year. Torstar responded with targeted digital initiatives to build online audiences and revenue streams. In 2013, the Toronto Star implemented a metered paywall, limiting free access to 10 articles per month to encourage subscriptions. This was reversed on April 1, 2015, to prioritize broader digital engagement via advertising and the Toronto Star Touch tablet app, which emphasized multimedia content. The company also acquired VerticalScope in August 2015, gaining over 1,000 niche digital websites to bolster non-news online properties and audience data capabilities. By 2018, Torstar reported advancements in a broader digital transformation plan, focusing on subscription growth and diversified content delivery. Digital efforts yielded mixed results, often insufficient to offset print erosion. Digital advertising at the Star Media Group dipped 4.1% in 2015, though the broader digital ventures segment grew 5.5% in late 2016. Renewed subscription strategies gained traction toward decade's end, with digital-only subscribers climbing to 23,400 by third-quarter 2019 and representing a growing share of revenue. However, overall revenues missed expectations in multiple quarters, as print declines outpaced digital gains, prompting cost reductions including dividend suspensions and workforce cuts. The period highlighted the structural challenges of legacy print dependency amid slower-than-needed digital monetization.Acquisition by NordStar (2020 Onward)
On May 26, 2020, NordStar Capital LP, a private investment firm founded by Paul Rivett and Jordan Bitove with backing from Fairfax Financial Holdings, entered into an arrangement agreement to acquire all outstanding Class A voting and Class B non-voting shares of Torstar Corporation for C$0.63 per share in cash, representing an enterprise value of approximately C$52 million.[16] [17] The transaction, which required approval from Torstar's board, a special committee of independent directors, and a majority of minority shareholders, aimed to take the company private amid declining print revenues and strategic shifts toward digital media.[16] A competing unsolicited bid from a group led by Canadian Media Investments Inc. (CMMI), backed by Brian Gainor, prompted Torstar to negotiate an amended agreement with NordStar on July 11, 2020, increasing the price to C$0.74 per share—a 17.5% premium over the original offer—for a total equity value of about C$60 million.[18] [19] Torstar's board determined the revised NordStar proposal superior after evaluating alternatives, including CMMI's conditional offer, which lacked firm financing commitments and full shareholder support.[19] Shareholders voted overwhelmingly in favor of the arrangement on July 21, 2020, with 98.7% of votes cast approving the deal despite the rival bid; the Ontario Superior Court of Justice granted final approval on July 29, 2020.[20] [21] The acquisition closed on August 5, 2020, after which Torstar's shares were delisted from the Toronto Stock Exchange, marking the end of its public trading status.[5] Following the takeover, NordStar initiated asset sales to bolster liquidity, including the divestiture of digital publishing subsidiaries such as VerticalScope in June 2021, which fetched a valuation approaching C$400 million and provided significant returns relative to the acquisition cost.[4] However, internal tensions emerged between Rivett and Bitove, culminating in a breakdown by March 2022; Rivett filed an application on September 1, 2022, in the Ontario Superior Court to wind up NordStar, alleging Bitove's deviations from agreed strategies, failure to produce a Toronto Star budget, and governance lapses that breached creditor obligations.[22] Bitove resigned from NordStar's board on August 13, 2022, without contesting the claims publicly at the time; the dispute highlighted divergent visions, with Rivett exiting the firm later that fall and Bitove assuming sole control.[23] [24] Under Bitove's leadership, Torstar pursued further restructuring amid ongoing industry pressures, including failed merger discussions with Postmedia Network Canada Corp. in mid-2023, which collapsed over debt allocation and control issues—Postmedia sought a 65% voting stake in a combined entity valued at reducing overall debt through conversions, but talks ended without agreement.[25] In September 2023, subsidiary Metroland Media Group entered creditor protection under the Companies' Creditors Arrangement Act, resulting in approximately 600 job cuts primarily at regional newspapers and a pivot to digital-only operations for many titles to address C$288 million in accumulated debt and persistent losses.[26] [27] These measures reflected broader efforts to stabilize core assets like the Toronto Star while contending with advertising declines and subscription challenges in Canadian print media.[26]Initial Proposal and Competing Bids
On May 26, 2020, NordStar Capital LP, a private investment firm led by Paul Rivett and Jordan Bitove, announced a non-binding agreement to acquire all outstanding shares of Torstar Corporation for C$0.63 per share in cash, representing an enterprise value of approximately C$52 million excluding Torstar's cash reserves.[16] [28] The offer included a termination fee of C$3.5 million payable by Torstar if it accepted a superior proposal, and was conditional on due diligence, regulatory approvals, and shareholder approval by a two-thirds majority.[16] Torstar's board unanimously recommended the transaction, citing NordStar's commitment to journalism and local communities as aligning with the company's values.[16] In early July 2020, Torstar received an unsolicited competing proposal from Canadian Modern Media Holdings Inc. (CMMH), a private investor group, offering C$0.72 per share in cash, which valued the deal at roughly C$59 million and represented a 14% premium over NordStar's initial bid.[29] [30] The CMMH bid prompted Torstar shares to surge, but the board noted it required further evaluation to determine if it constituted a "superior proposal" under the original agreement.[30] NordStar responded on July 11, 2020, by amending its offer to C$0.74 per share, increasing the total value to C$60 million—a 17.5% hike from its original price—and securing support from key shareholders holding about 58% of voting shares, effectively locking up the deal against further competition.[31] [32] Torstar's board endorsed the revised NordStar proposal over CMMH's, describing the rival bid as "disingenuous" due to concerns over financing certainty and potential delays.[33] A last-minute attempt by another rival group to raise its bid at the July 21 shareholder meeting was rejected, with over 99% approval for NordStar's offer.[34]Shareholder Approval and Internal Disputes
On July 21, 2020, Torstar Corporation's shareholders voted overwhelmingly in favor of the arrangement with NordStar Capital LP, approving the takeover by a margin of 98.7% for both Class A and Class B shares, enabling the company to be taken private for approximately $60 million at $0.74 per share.[35][20] The special committee of Torstar's board had unanimously recommended the amended NordStar agreement, which included a 17.5% price increase from the initial $0.63 per share offer announced in May 2020, following the emergence of a rival bid.[36][37] The approval process faced external challenges from a last-minute competing offer, which led to shareholder complaints filed with the Ontario Securities Commission regarding the board's handling of the bids, though the regulator did not intervene to alter the outcome.[34] Internally, Torstar's board and controlling shareholders, including the Atkinson Foundation holding a majority of Class A shares with enhanced voting rights, maintained unified support for the NordStar transaction, with the chair affirming overwhelming backing from the families involved.[38] No significant board dissensions were reported during deliberations, as the special committee's review deemed the NordStar deal superior despite the rival's higher headline value, citing factors like financing certainty and reduced risk.[29] Subsequent to the shareholder vote, the Ontario Superior Court of Justice granted final approval for the arrangement on July 28, 2020, overruling objections from the rival bidder who sought an appeal and a stay, which was denied, clearing the path for closing on August 5, 2020.[39][40] This resolution of procedural hurdles underscored the absence of protracted internal fractures at Torstar during the approval phase, though the rival bid had briefly heightened scrutiny on the board's fiduciary duties.[41]Post-Acquisition Restructuring and Owner Conflicts
Following the August 2020 acquisition of Torstar by NordStar Capital LP—a private investment vehicle controlled by Jordan Bitove and Paul Rivett—the company's ownership structure faced significant internal strife. By September 2022, Rivett filed a court application seeking to wind up NordStar, citing an irreparable breakdown in his partnership with Bitove, including deadlocks over strategic direction, such as editorial policies and operational decisions at the Toronto Star. Rivett alleged Bitove had shifted positions on key issues, leading to paralysis in governance, while Bitove countered that efforts to enhance accountability and competitiveness were obstructed.[42][43][44] The dispute escalated publicly, with both parties airing grievances in court filings and statements, prompting an apology from Bitove to Torstar staff for the "public spectacle." In October 2022, Bitove and Rivett agreed to resolve the matter through mediation and arbitration rather than liquidation. By November 24, 2022, an arbitrator awarded Bitove full ownership of Torstar Corporation, allowing him to assume sole control, while Rivett exited with other assets from the partnership dissolution. Rivett expressed gratitude to Torstar's readers and employees in a parting statement, framing the split as a necessary step amid irreconcilable differences.[45][46][47][48] Under Bitove's sole ownership, Torstar pursued aggressive restructuring to address financial pressures from declining print revenues. In July 2023, merger discussions with Postmedia Network collapsed due to regulatory and financial uncertainties, exacerbating liquidity issues. This led to a major overhaul of subsidiary Metroland Media Group, which operated over 70 community newspapers: on September 15, 2023, Metroland filed for creditor protection under the Companies' Creditors Arrangement Act, resulting in 605 layoffs and the cessation of print editions for its regional titles. The move was attributed to unsustainable losses from shifting advertising models and operational costs, with NordStar injecting capital to preserve core assets like the Toronto Star.[49][26][50] Creditors approved Metroland's debt restructuring plan in December 2023, averting full liquidation and enabling a transition to digital-focused operations, though it owed $41.6 million to Torstar and $16 million in severance. Bitove described the changes as essential for long-term viability, emphasizing digital adaptation over legacy print models amid broader industry contraction. No further owner-level conflicts have been reported since the 2022 arbitration, with Bitove maintaining unified control.[51][52]Operations
Core Publishing Brands
Torstar's core publishing brands are centered on its daily newspapers and community publications, primarily under the Daily News Brands division, which produces print and digital content focused on local and regional news in Ontario. These brands include the flagship Toronto Star and several metropolitan dailies, alongside dozens of weekly community newspapers and online sites serving southern and central Ontario.[1][2] The Toronto Star, established on November 3, 1892, as the Evening Star and renamed the Toronto Daily Star in 1900, remains the company's largest publication by circulation, with a daily print run historically exceeding 200,000 copies in the Greater Toronto Area as of the early 2020s, supplemented by its digital platform thestar.com. It emphasizes investigative journalism, local coverage, and opinion pieces aligned with social democratic principles, as outlined in its longstanding Statement of Principles adopted in 1996. Torstar also operates the Hamilton Spectator, founded in 1848 and serving approximately 100,000 readers in the Hamilton area with coverage of local government, business, and sports; the Waterloo Region Record, established in 1878, which provides news for the Kitchener-Waterloo region including technology and education sectors; and the St. Catharines Standard, a daily since 1873 targeting the Niagara Peninsula with regional reporting on tourism, agriculture, and cross-border issues with the United States.[1][53][2] Complementing these dailies, Torstar maintains around 75 community and regional newspapers, many published weekly or bi-weekly, such as the Niagara Falls Review and Welland Tribune, which focus on hyper-local stories in smaller municipalities across Ontario. These outlets, historically aggregated under subsidiaries like Metroland Media prior to restructurings, collectively reach millions through print distributions and integrated digital editions, though circulation has declined amid broader industry shifts to online subscriptions.[1][54][2]Toronto Star and Metropolitan Dailies
The Toronto Star functions as Torstar Corporation's flagship daily newspaper, delivering broadsheet print and digital content focused on news, investigations, politics, sports, and Greater Toronto Area affairs to readers across Canada.[55][1] Published seven days per week, it maintains operations through Toronto Star Newspapers Limited, a wholly owned subsidiary of Torstar, with an emphasis on multi-platform delivery including subscriptions and newsletters that have approached 300,000 subscribers for its primary daily briefing by 2024.[1][56] Torstar's metropolitan dailies extend beyond the Toronto Star via the Metroland Media Group division, which operates six daily newspapers targeting southern Ontario communities such as Hamilton, Waterloo Region, Niagara, and Peterborough.[57][58] These publications provide localized reporting on regional events, business, and public affairs, complementing the Toronto Star's broader metropolitan scope.[59] In 2018, Torstar integrated five free Metro-branded dailies into the Toronto Star ecosystem, reallocating resources toward enhanced local and investigative journalism by adding 20 reporters in key markets.[60] Facing industry-wide print declines, Metroland filed for bankruptcy protection in 2023, discontinuing dozens of weekly community papers while preserving its core daily titles in digital and limited print formats to sustain community-focused coverage.[61] The Toronto Star, historically Canada's highest-circulation daily with over 300,000 copies in earlier audits, has shifted toward digital metrics amid broader newspaper revenue pressures.[62]Community and Regional Newspapers
Metroland Media Group, a subsidiary of Torstar, oversees the company's community and regional newspaper operations, primarily in Southern Ontario. Established in 1981 through the merger of Torstar's Metrospan Community Newspapers and Inland Publishing Company, Metroland historically published dozens of local titles focused on hyper-local coverage of municipal affairs, events, and business.[63] By 2023, it operated 71 regional newspapers, including six dailies and numerous weeklies, serving communities with print editions that distributed flyers and local ads alongside news.[64] The six daily newspapers under Metroland provide broader regional coverage and continue print operations as of 2025:- The Hamilton Spectator
- Peterborough Examiner
- St. Catharines Standard
- Niagara Falls Review
- Waterloo Region Record
- Welland Tribune[65]