Sunday, February 22, 2009

Will Canwest woes ultimately result in one daily Vancouver paper?

Charlie Smith writes:

This idea came to me yesterday from a former Pacific Press reporter. He pointed to Canwest's current woes, and wondered if the company might decide to eliminate one of its daily Vancouver newspapers to cope with its credit crunch.

Yesterday, Canwest shares fell to 31 cents after the Globe and Mail reported that the company might seek bankruptcy protection by the end of February.

One obvious cost-cutting measure, according to this former scribe, would be to shut down either the Vancouver Sun or the Province.

In the past, Canwest and the companies that owned the papers before, Hollinger and Southam, maintained both Vancouver daily papers through hard times in part to keep competitors like Torstar and the Sun newspaper chain out of the market.

But with the economy in the tank, it would be foolhardy for anyone to start another daily paper in Vancouver, which eliminates the disincentive to shut down one of the two daily papers.

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