With Postmedia’s revenue deteriorating rapidly, the media company appears to have little value to salvage, sources say.Chris Bolin/The Globe and Mail
Postmedia has struck its second deal with a fintech company, offering ad space in exchange for revenue.
Under the deal, the Toronto-based company will market Agility Forex Ltd.'s international payments and currency transfers services. Agility Forex, in return, will pay Postmedia a portion of its revenue and give it the ability to acquire shares of the company.
Postmedia would not disclose the duration of the deal, the value of the advertising space or the revenue it expects to receive.
The company announced a similar deal with Mogo Finance Technology Inc. in January.
That three-year deal included at least $50-million of promotional commitments from Postmedia for four per cent of Mogo's existing revenue and 11 per cent of incremental revenue, subject to certain adjustments, as well as rights to buy stock in the company.
Postmedia CEO Paul Godfrey has said he believes these types of strategic moves can help the company monetize in an evolving media environment.