Hard to know what to think of the Postmedia-Sun wedding.
Obviously, the union of two sinking ships won't, in the long run, buoy up either of them... the question is, will they sink twice as fast or half as fast?
What's not in question in the mind of any serious analyst is the fact that they be sinkin', baby; maybe sooner, maybe later, but they be sinkin'!
This deal is supposedly going to be financed by a share sale and a new bond issue. Hmm... really?
Would YOU buy shares in this sinking ship? Would you lend them money by buying their bonds?
Reading between the lines, I see where for the 300+ millions being paid here, Postmedia is getting a few dozen real estate parcels in urban centres in Ontario, Manitoba, and Alberta. It doesn't take a lot of real estate in Alberta or Ontario to add up to a tidy sum, and I'm wondering when and how that will be stripped out post haste from the potential reach of creditors, who in a year or two will be dismembering the carcass of Canada's latest media conglomerate.
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