Canadian entrepreneur Stephen Smith is set to acquire a minority share in The Economist Group, marking a notable addition to the ranks of billionaires investing in prominent media outlets. Smith, who co-founded the mortgage lending giant First National Financial Corp., has confirmed his agreement to purchase a 26.7 per cent stake in the influential publication from Lynn Forester de Rothschild and her foundation.
A Strategic Investment
The acquisition, facilitated through Smith’s family holding company, Smith Financial, underscores a strong commitment to The Economist’s legacy of editorial independence. According to a spokesperson for Smith Financial, Justin Brenner, this investment will ensure that the publication’s strategic direction and operations remain unchanged. The deal is currently pending approval from The Economist’s board of trustees.
The stake was put up for sale in October, following the passing of Forester de Rothschild’s husband, who had previously chaired The Economist from 1972 to 1989. Analysts had estimated the value of the stake to be between £200 million and £400 million, translating to approximately $360 million to $730 million. Sources familiar with the negotiations indicated that Smith’s purchase falls within this projected range, although the exact financial terms have not been disclosed.
Joining a Prestigious Ownership Group
With this investment, Smith becomes part of an exclusive consortium of owners that includes some of Europe’s wealthiest families. Notably, the Agnelli family, which holds a 43.4 per cent stake, along with members of the Cadbury and Schroder families, are also significant shareholders in The Economist. The publication boasts a robust subscriber base of 1.25 million, having transitioned successfully from a traditional weekly magazine to a dynamic digital platform—approximately 70 per cent of its readers now engage with content online.
The governance structure of The Economist is designed to safeguard its independence, featuring multiple classes of shares that prevent any one shareholder from exercising more than 20 per cent of the voting power. This framework aims to mitigate the risk of undue influence from individual investors.
A Legacy of Philanthropy and Business Acumen
At 74 years old, Smith has amassed considerable wealth through his ventures in financial services, notably as a leader in the Canadian mortgage sector. His experience spans roles at First National, Canada Guaranty Mortgage Insurance, and private equity firm Peloton Capital Management. Beyond his business pursuits, Smith is known for his philanthropic efforts, including a landmark $100 million donation to Queen’s University to elevate its engineering programme, marking the largest contribution to a Canadian engineering school to date.
Smith and his wife, Diana Blake, have also extended their charitable efforts to various institutions, including Historica Canada and the Royal Ontario Museum, as well as supporting the Canadian media outlet The Walrus. His investment in The Economist reflects a blend of business interests and philanthropic values, as the publication holds significant cultural and intellectual weight beyond mere financial metrics.
The Economist’s Resilient Performance
The Economist, established in 1843 by a Scottish hat manufacturer advocating for free trade, has evolved into a global media powerhouse with a workforce of 1,540 across 26 countries, including major markets like the United States, China, and India. In its recent half-year earnings report ending September 2025, The Economist reported revenues of £170 million, marking a 4 per cent increase from the previous year. Operating profits surged to £20.2 million, a 23 per cent rise attributed to the robust performance of its digital advertising efforts.
Over the past decade, the trend of billionaires acquiring media properties has gained momentum, with high-profile figures such as Jeff Bezos purchasing The Washington Post and Laurene Powell Jobs acquiring The Atlantic.
Investment bank Lazard Inc. acted as the advisor to Forester de Rothschild during the transaction, while Smith Financial received guidance from Barclays and the law firm Torys LLP.
Why it Matters
Stephen Smith’s investment in The Economist is not merely a financial transaction; it embodies a strategic commitment to uphold the publication’s esteemed tradition of journalistic integrity amid a rapidly evolving media landscape. As the media industry grapples with challenges posed by digital transformation and shifting reader habits, this injection of capital from a seasoned entrepreneur may bolster The Economist’s ability to innovate while preserving its core values. The implications of this deal extend beyond mere ownership; they reflect a growing recognition among investors of the importance of influential media platforms in shaping public discourse and understanding in an increasingly complex world.