TORONTO, ONTARIO--(Marketwire - June 26, 2012) - Torstar (TSX:TS.B) today announced it has made an investment in SHOP.CA, a new online e-commerce marketplace aimed at Canadian shoppers. The investment will give Torstar an initial stake of approximately 14% with a commitment to increase its interest to 30% over thirty months based on the company achieving certain performance milestones, in exchange for a total investment of up to $6 million in cash and up to $12.4 million in promotional support. Torstar's promotional support to SHOP.CA will be provided through its many media properties within Metroland Media Group, Star Media Group and Torstar Digital. In addition to the investment, Metroland Media Group has entered into a strategic alliance with SHOP.CA focused on developing the merchant base engaged with selling goods through the SHOP.CA platform.
David Holland, President and CEO of Torstar said "e-commerce is an area which is growing rapidly and we are very pleased to be partnering with the management team at SHOP.CA to bring a new Canadian alternative to Canadians who shop online."
Ian Oliver, President of Metroland said "Metroland has strong relationships with thousands of local businesses and we think SHOP.CA will be an attractive way to support them in tapping into the growing trend of online shopping".
"We are proud to have aligned with such an experienced industry leader," said Drew Green, SHOP.CA ceo and co-founder. "Torstar has a proven track-record of using its media assets to drive online transactions. It is truly exhilarating to work with a partner who shares our vision to improve the online shopping experience in Canada," said Green.
SHOP.CA offers millions of products from many leading brands in over two dozen product categories. Price, speed of delivery, ease of return, and a rewards program are important aspects that are expected to appeal to Canadian shoppers.
ABOUT TORSTAR CORPORATION
Torstar Corporation is a broadly based media and book publishing company listed on the Toronto Stock Exchange (TS.B). Its businesses include the Star Media Group led by the Toronto Star, Canada's largest daily newspaper, and digital properties including thestar.com, toronto.com, Workopolis, Olive Media, and eyeReturn Marketing; Metroland Media Group, publisher of community and daily newspapers in Ontario; and Harlequin, a leading global publisher of books for women.
Torstar's news releases are available on the Internet at www.torstar.com.
Contact Information:
Lorenzo DeMarchi
Executive Vice-President and Chief Financial Officer
(416) 869-4776
www.torstar.com