In a notable shift within the media landscape, Canadian entrepreneur Stephen Smith has announced plans to acquire a minority stake in The Economist Group, marking him as the latest billionaire to invest in a prominent media outlet. Smith, who co-founded First National Financial Corp., will obtain a 26.7 per cent share from Lynn Forester de Rothschild and her foundation, a move that underscores the ongoing trend of wealthy individuals gaining influence in major media platforms.
Significant Acquisition in the Media Landscape
The acquisition, confirmed by Smith Financial, his family holding company, is poised to enhance the already robust portfolio of The Economist, which boasts a subscriber base of 1.25 million. The publication has adeptly transitioned from a traditional weekly magazine format to a predominantly digital platform, with around 70 per cent of its readers accessing content online. A spokesperson for Smith Financial, Justin Brenner, highlighted that this investment demonstrates Smith’s commitment to uphold The Economist’s commitment to editorial independence. “This investment reflects Mr. Smith’s full support for The Economist’s long-standing tradition of rigorous editorial independence,” Brenner stated in an email. The deal is still pending approval from The Economist’s board of trustees.
Forester de Rothschild, who has held the stake since her late husband’s tenure as chair from 1972 to 1989, first put the holding up for sale in October 2023. Analysts had projected that this stake could fetch between £200 million and £400 million (approximately $360 million to $730 million). Sources familiar with the transaction indicate that the purchase price falls within that range, although Smith Financial has refrained from disclosing specific financial details.
Joining an Elite Group of Shareholders
With this investment, Smith and his family will join an exclusive group of high-profile shareholders that includes the Agnelli family from Italy, who own 43.4 per cent of The Economist, as well as members of the Cadbury and Schroder families. Notably, The Economist’s governance structure is designed to maintain its independence, featuring multiple classes of shares to prevent any single shareholder from wielding more than 20 per cent of the voting power.
At 74, Smith has built a substantial fortune through his ventures in financial services, notably as an executive at First National, Canada’s largest non-bank mortgage lender, as well as his involvement with Canada Guaranty Mortgage Insurance and Peloton Capital Management. Alongside his business pursuits, Smith is known for his philanthropic efforts, which include a landmark $100 million donation to Queen’s University aimed at elevating its engineering programme to international prominence.
A Legacy of Philanthropy and Influence
The acquisition of a stake in The Economist exemplifies the intersection of Smith’s business acumen and his philanthropic ethos. While The Economist remains a profitable entity, its significance often extends beyond financial metrics to encompass its influence and prestige within global political and business circles. Founded in 1843 by a Scottish hat manufacturer advocating for free trade, The Economist now employs 1,540 staff members across 26 countries, including major markets such as the United States, China, and India.
In its recent half-year earnings report, The Economist reported revenues of £170 million for the six-month period ending September 2025, representing a 4 per cent increase compared to the previous year. The publication also enjoyed an operating profit of £20.2 million, a 23 per cent rise attributed to robust digital advertising performance.
The Broader Trend of Billionaire Media Investments
Smith’s foray into media ownership follows a broader trend observed over the past decade, where numerous self-made billionaires have acquired significant media properties. Notable examples include Amazon founder Jeff Bezos’s purchase of The Washington Post and Laurene Powell Jobs’s acquisition of The Atlantic, highlighting a growing trend of wealthy individuals seeking to influence public discourse through media ownership.
Investment bank Lazard Inc. facilitated the transaction on behalf of Forester de Rothschild, while Smith Financial received advisory assistance from Barclays and law firm Torys LLP.
Why it Matters
Stephen Smith’s investment in The Economist is emblematic of a shifting media landscape where billionaire ownership has become increasingly prevalent. This trend raises important questions about the implications for editorial independence and the potential influence of wealthy individuals on journalistic integrity. As media outlets continue to navigate the challenges posed by digital transformation and changing consumer habits, the involvement of billionaires like Smith could shape not only the future of The Economist but also the broader media ecosystem.
