As part of an aggressive digital diversification strategy being pursued by its parent company Torstar, Metroland Media Group has paid $1.5 million for a minority stake in the online automated financial advisor service Nest Wealth.
The deal also includes advertising support for the so-called “robo-advisor” company in Metroland’s extensive network of print and digital properties.
Established in 2014, Nest Wealth caters to individuals with small to mid-sized investment portfolios, which Metroland’s vice-president of marketing Michelle Digulla said is well aligned with the media company’s existing audience.
“If you think about the people who read our newspapers or come to our sites, it is that everyday Ontarian who trusts us and can find value in something like Nest Wealth,” she said.
Metroland’s ownership stake in Nest Wealth was not disclosed, but Digulla said the company is investing in a business with considerable upside.
“We think it’s a company with legs and some unfulfilled demand,” said Digulla, who joined Metroland as vice-president of marketing earlier this year after spending much of her career in the mobile space with companies including Telus, Sony and Motorola.
“The financial vertical is of interest to us; expanding our potential reach with small to mid-sized investors, particularly online, is a good strategy.”
The deal has been in the works for about nine months, said Digulla.
Nest Wealth founder and CEO Randy Cass is currently developing a branding and marketing strategy for the company that will be amplified through Metroland’s approximately 110 publications – and associated web properties – beginning in September, said Digulla.
Last week, Torstar announced it had paid $200 million to acquire a majority interest in the digital media company VerticalScope, which operates a series of forums and content sites in verticals including automotive, outdoors and health. Torstar president and CEO David Holland said the moves come as the company attempts to position itself for a “digitally oriented future.”
Torstar’s Metroland unit had revenues of $119.1 million for the three months ended June 30, down from $129.9 million a year earlier, with the company noting in its management analysis that lower ad revenues reflected continued pressure on national ad revenues, while flyer distribution revenues were down as a result of the closure of several large retailers.
