Canadian Billionaire Stephen Smith Acquires Stake in The Economist Group

Canadian billionaire Stephen Smith has acquired a 26.9% minority stake in The Economist Group (TEG) from Lynn Forester de Rothschild, marking a significant ownership change for the British current affairs magazine, which has only seen a few such transitions in its 183-year history. The financial terms of the deal were not disclosed, but the stake was previously valued at approximately £400 million ($537 million). Smith's family holding company, Smith Financial Corp., is known for its investments in financial services, including a co-ownership of the proxy advisory group Glass Lewis.

The GuardianBloomberg

Lynn Forester de Rothschild, who has held her stake in TEG since 2002, initiated the sale as part of a broader strategy to reshape her investment portfolio. The Rothschild family, through their holding company EL Rothschild, had been exploring the sale since last year, hiring Lazard to advise on the transaction. Forester de Rothschild is a prominent philanthropist and the chief executive of EL Rothschild, which she established with her late husband, Sir Evelyn de Rothschild.

The Telegraph - UK

The Economist Group, which includes the magazine, its digital-only sister publication 1843 Magazine, and the Economist Intelligence Unit, reported revenues of £369 million and an operating profit of £48 million for the year ending March 2025. The magazine's subscriber base increased by 3% year-on-year to 1.25 million, with digital subscriptions accounting for a significant portion of new sign-ups.

Bloomberg

Smith's investment is seen as a commitment to maintaining the magazine's editorial independence, a core value of TEG. A spokesperson for Smith indicated that the acquisition would not alter the magazine's strategy or operations. The deal is subject to approval from TEG's board of directors and its four independent trustees, who oversee the magazine's editorial integrity.

The Guardian

Despite the positive outlook from Smith's camp, there are concerns regarding the future of The Economist in an increasingly digital landscape. The magazine has begun to adapt its traditional style, moving towards more personality-driven journalism and video content. Critics argue that this shift may dilute its long-standing commitment to rigorous editorial independence.

Bloomberg

• “The decision to cash in her 20pc holding prompted her family to follow suit.” — Source on Lynn Forester de Rothschild's divestment

The Telegraph - UK

The acquisition process will proceed with necessary approvals, and the implications of Smith's ownership will likely unfold as The Economist navigates its strategy in the digital age. The ongoing evolution of the magazine's editorial approach will be closely monitored by both supporters and critics alike.

Bloomberg