RE:Can't let it go.Hi 20,
The major problem with Torstar's disposition of Harlequin was the lack of a replacement strategy. They were seeing a seismic decline in their core newspaper business and they had a few hundred million in debt so they panicked when they received an unsolicited offer to sell. This was not part of a well thought out major strategy. It was part of take the cash on the table and we will figure out the where to next after the cheque clears the bank.
Harlequin was profitable, but a relatively small publisher and it was in decline. It was competing with giants with huge economies of scale in printing and distribution and ultimately would have been eaten up by these competitors. Torstar could see the writing on the wall. They should have sold years earlier, but that was a smaller sin.
The real big sin was in not replacing the cash flow they gave up from Harlequin with a cash generating business with a sustainable competitive advantage. Fine perhaps to pay off the debt, but VerticalScope does not spin off any cash and is subject to the same advertiser dependent challenges that are hammering the newspaper portfolio.
Harlequin was originally acquired as a diversification strategy to lower the risk profile of Torstar. VerticalScope just doubles down on the same kind of failing businesses that Torstar seems incapable of successfully managing. See Workopolis, WagJag, StarTouch, Shop.ca....for a partial list of poorly conceived and executed businesses.
20, you need to let go of Harlequin or you will make yourself crazy. Trying to understand the braintrust at Torstar in unfathonable and has sent many to the insane asylum.