Vancouver’s Mogo Finance Technology this week announced a strategic marketing collaboration agreement with Postmedia Network, which represents 200 brands across print, online and mobile platforms.
The companies will collaborate to market Mogo’s current suite of products. These products will be marketed nationally through Postmedia’s more than 200 trusted brands including National Post, Financial Post, Toronto Sun, Vancouver Sun, Ottawa Citizen, Calgary Herald, 24hrs newspapers and destination websites. This agreement includes media promotional commitments of at least $50 million and provides Postmedia with revenue sharing and equity participation through warrants in Mogo.
“In a sea of online content, trusted and credible news sources like Postmedia are becoming more and more important to all consumers,” said Dave Feller, Mogo’s Founder. “There’s a broader digital transformation happening across many industries as consumers, led by millennials, manage much of their lives through their mobile phones.”
“This innovative strategic partnership which includes both incentive based revenue sharing, along with equity participation in the form of warrants, truly aligns Postmedia to help us not only grow our revenue but also build long term shareholder value,” added Greg Feller, Mogo’s CFO.
“It is quite well known that the traditional media industry is significantly disrupted,” said Andrew MacLeod, Chief Commercial Officer, Postmedia. “Our strategic collaboration with Mogo is exactly the type of innovation that can accelerate both companies’ business objectives – to amplify Mogo’s customer acquisition goals, brand awareness and new product promotion and Postmedia’s development of innovative monetization strategies.”
“We are on a transformative journey at Postmedia and this strategic collaboration with Mogo represents one important step forward that could be replicated in other sectors,” said Paul Godfrey, Postmedia’s President and CEO. “Because of the innovative structure of this agreement our interests are aligned and Postmedia shares in Mogo’s success.
Postmedia is in the midst of merging newsrooms—which once competed against each other—resulting in roughly 90 layoffs. The company has approximately $670 million in debt.