Postmedia, Torstar swap small newspapers, close most

Postmedia and Torstar have swapped more than 40 local community newspapers with each other, and most are destined to be shut down. The media companies announced in a press release Monday that Postmedia would buy two dozen community newspapers and two free commuter dailies from Torstar, and at the same time sell 17 newspapers — 15 community papers and two big-city free commuter dailies — to Torstar. No cash changed hands during the deal, as the papers “have approximately similar fair values,” Postmedia said. Only four papers — St. Catharines Standard, Niagara Falls Review, Welland Tribune and Peterborough Examiner — will continue to operate  CBC

COMMENT SUGGESTS TAX PLAY

A reader wrote this comment to the story: “I don’t understand why Post Media and Torstar are going through this exchange of newspapers only to shut most of them down. Why not just shut them without trading them? Perhaps it is more tax advantageous? If so, that shouldn’t be allowed.”

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