The Press will become a non-profit organization. The company made the announcement ahead of a press briefing on Tuesday morning.
The Press hopes to adopt a structure not-for-profit will benefit from a financial contribution of the order of 50 million dollars on the part of Power Corporation. The change of structure, however, will require the repeal of a provision of a private act passed in 1967, which governs the ownership of The Press.
“This is a decision which has been reflected in the context in which our industry operates. What we see is that the reality of the media has evolved over the past few years and it was to date our model to this new reality”, explained in press conference the president of The Press, Mr. Pierre-Elliott Levasseur.
If the maneuver works, The Press will come out of the bosom of Power Corporation and will become a social utility trust, totally independent. “Any government assistance and any money raised from donors, will be dedicated to the operations of The Press in the ultimate goal of producing a quality information, the more accessible as possible,” says a press release.
The contribution of $ 50 million to Power Corporation will allow The Press to “achieve orderly way its plan of strategic development and to create conditions essential to broaden the base of its support to the federal government, major donors, foundations, advertisers and the public at large”, can we still read.
According to The Press, the american giants such as Facebook and Google account for nearly 80% of revenues, digital advertising in Canada, which contributes to making its digital model to be “more fragile than in the past.” In this sense, the media company intimate the federal government to implement in the shortest possible time, “her intention expressed in the last budget to financially support the print media through, among other things, concepts of philanthropy, in addition to direct assistance to them to enable them to pursue their mission, is essential to a healthy democracy”.
“The federal government announced in its last budget that it was prepared to support the written media, but that he was not ready to support print media which were owned by rich families or large companies. It is in this overall context that we said that we needed to evolve our model. It is believed today that the model we put in place, it is the best model to ensure the sustainability of The Press in the long term,” said Mr. Levasseur.
For its part, Power Corporation is ready to implement, with the collaboration of the unions, a mechanism to retain under its load obligations in the past pension plans on a going concern basis of the business. “This will, among other things, the consequence of reducing the future finance charges of The Press while being to the advantage of pensioners and active and inactive employees who have accumulated pension up to the date of the establishment of the new structure”.
“Power Corporation is proposing a mechanism that would allow him to keep the bonds of the past pension plans. However, it is necessary the collaboration of the trade union to put in place these mechanisms. Therefore, we will discuss with the trade unions in the next few weeks to put it all in place”, further said Mr. Levasseur.
More details to come…