TORONTO — Postmedia Network Inc. plans to buy a minority stake in The Logic Inc. — a digital-only Canadian media outlet with a mandate to break tech-focused news through investigative journalism, the two companies announced Wednesday.
Andrew MacLeod, chief executive of Postmedia — owner the National Post and other publications — said that discussions began after he and Logic founder David Skok were introduced to each other a few months ago by a mutual acquaintance.
"And then we just realized there might be an opportunity to make something interesting happen. So it evolved," MacLeod said Wednesday in a phone interview.
Some of the details are still being worked out by the two companies, such as the size of Postmedia's investment, but MacLeod said there will likely be some revenue sharing.
"We see it as an opportunity to utilize some of the content that The Logic produces and disseminate it across our network."
"And then, as an investor in The Logic, we're incentivized to help them grow their digital subscription business and we would participate in that growth as a potential investor."
But MacLeod said there will be "zero impact" or reduction of Postmedia's own editorial coverage "because we're very comfortable — in fact, we're very proud — of our existing editorial footprint."
Postmedia's six-month series on innovation last year won one of the gold medals issued at SABEW Canada's Best in Business awards in April. The Logic's coverage also won golds in two categories at the same awards.
Skok, The Logic's chief executive and editor-in-chief, wrote in a separate blog posting that the partnership will allow the startup operation to hire more reporters. Its current staff of nine, includes four reporters.
"We hope this will expand the debate on how Canada can continue to be a better place to live and work, and that we can develop our subscriber community as a result," Skok wrote.
Companies in this story: (TSX:PNC.A, TSX:PNC.B)