RE:Torstar acquires IpoliticsHi Don,
Your assessment of the iPolitics deal is correct. It is inconsequential with more downside risk than upside benefits. It was founded by the son of a Molson family member and is unprofitable, hence the reason the purchase price wasn’t disclosed. Torstar has assumed all of the future liabilities to buy a niche business that generates content of interest to a very small audience. QP Briefings is the same struggling model and if it generates a return it would be in the low five figures in a good year.
This deal is is another distraction play and does nothing to increase shareholder value. It will be described as a tuck-in acquisition as part of the great “transformation” scam. This is nothing more than bailing out another rich dilettante that would appeal to Honderich’s distorted sensibilities. Again, where is the Board? Probably busy trying to rationalize the “VertigoScope” disaster.