Vancouver's Georgia Straight sold to Media Central for $1.25M
Credit to Author: Postmedia News| Date: Mon, 06 Jan 2020 17:22:54 +0000
Longtime Vancouver alternative weekly The Georgia Straight has been sold to Media Central for $1.25 million.
The company announced in a statement Monday that it had signed a binding letter of intent to purchase Vancouver Free Press, the sole owner and operator of the Georgia Straight.
The publication was launched more than 50 years ago and covers news, lifestyle and entertainment in Vancouver.
The deal is set to be complete by Feb. 28, 2020 and will see Media Central pay $750,000 in cash, along with $350,000 in common shares of the company.
Media Central will also assume up to $250,000 in accrued liabilities in exchange for 100 per cent of the shares of VFP and related publications. No debt will be assumed and $150,000 will be paid as an advisory fee through the issuance of common shares of the company.
“The Straight is a highly trusted Vancouver institution. Dan McLeod and his family have built a brand that has pioneered and defined the independent voice in Canadian media for more than 50 years,” said Brian Kalish, Media Central CEO.
“While the North American media landscape continues to change, traffic and readership at the alternative weeklies has remained steady. Media Central sees a huge opportunity to consolidate and protect the soul of North American weeklies and unify their passionate base of alternative followers with a smart, and scalable business model.”
Founder, publisher and editor Dan McLeod said he has received several offers to buy the paper over the years but that none made sense until meeting with Media Central. The purchase includes the Georgia Straight’s print edition, its website and straightcannabis.ca.
Media Central has said it hopes to purchase up to 100 alternative papers in Canada and the U.S., with each serving a dedicated community but united under “one alternative umbrella.” In a recent deal, Media Central also purchased the Toronto NOW.
According to the statement, the Georgia Straight pulls 2.7 million monthly print readers and 1.8 million via its website. The paper is distributed at nearly 7,000 drop locations throughout Vancouver, Burnaby, North and West Vancouver, New Westminster and Richmond.
Media Central is an independent and alternative media company which aims to consolidate independent media markets across Canada and the U.S. under one umbrella. The company also owns the Toronto-based NOW Magazine and CannCentral.com.