Canadian Billionaire Stephen Smith Acquires Stake in The Economist Group

Canadian billionaire Stephen Smith has acquired a 26.9% stake in The Economist Group (TEG) from Lynn Forester de Rothschild, marking a significant shift in the ownership structure of the renowned British publication. This transaction, which is subject to approval by TEG's board of directors and independent trustees, is the first major ownership change in a decade and only the third in the magazine's 183-year history. The financial details of the deal remain undisclosed, although previous estimates suggested the stake could be valued between £200 million and £400 million ($360 million to $730 million).

The GuardianThe Telegraph - UKBloombergCanadian billionaire acquires 27% stake in The EconomistThe Globe and Mail (Toronto)

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 following the death of her husband, Sir Evelyn de Rothschild. The Rothschild family had been exploring the sale of their entire stake since last year, with investment bank Lazard advising on the transaction. Exor, the investment company led by John Elkann, remains the largest shareholder in TEG with a 43.4% stake.

The Guardian

The Economist Group, which includes the flagship magazine, a digital-only publication, and a business intelligence unit, reported revenues of £369 million and a profit of £48 million for the year ending March 2025. The publication has seen a 3% increase in subscriber numbers, reaching 1.25 million, with digital subscriptions accounting for a significant portion of new sign-ups. The magazine has evolved from a traditional print format to a digital platform, appealing to business and political elites globally.

Bloomberg

Stephen Smith, the CEO of Smith Financial Corp., is known for his investments in the Canadian mortgage market, co-founding First National Financial Corp. His net worth is estimated at $7 billion. Smith's acquisition of a stake in TEG represents his first significant foray into media, and he has expressed a commitment to maintaining the publication's editorial independence. A spokesperson for Smith Financial stated, “This investment reflects Mr. Smith’s full support for The Economist’s long-standing tradition of rigorous editorial independence and will see The Economist’s strategy and operations continue unaffected.”

Canadian billionaire acquires 27% stake in The EconomistThe GuardianThe Globe and Mail (Toronto)Bloomberg

Despite the positive outlook from Smith's camp, there are concerns regarding the future of The Economist in the digital age. The publication faces challenges related to maintaining its editorial independence amid increasing ownership by wealthy individuals. Critics argue that the growing influence of billionaires in media could compromise journalistic integrity, especially as The Economist adapts to a rapidly changing media landscape.

The Globe and Mail (Toronto)

The approval process for Smith's acquisition will involve scrutiny from TEG's independent trustees, who are tasked with upholding the magazine's editorial values. As The Economist continues to navigate the complexities of modern media, the implications of this ownership change will be closely monitored by industry analysts and stakeholders alike.

The Guardian

• “This investment reflects Mr. Smith’s full support for The Economist’s long-standing tradition of rigorous editorial independence and will see The Economist’s strategy and operations continue unaffected,” — Justin Brenner, Spokesperson for Smith Financial

The Globe and Mail (Toronto)

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

The Telegraph - UK