Canadian Mortgage Billionaire Stephen Smith Acquires Stake in The Economist Magazine
Canadian billionaire Stephen Smith has agreed to purchase a minority stake in The Economist Group, representing the first ownership shake-up at the prestigious British current affairs magazine in ten years. This significant transaction marks Smith's initial venture into the media industry after building his fortune in Canada's mortgage sector.
Details of the Acquisition
Smith and his family holding company, Smith Financial Corp., will acquire the entire 26.9% stake currently held by Lynn Forester de Rothschild, her family, and her family foundation. Representatives from both companies confirmed the deal through emailed statements, though the financial terms of the transaction remain undisclosed. The agreement is subject to certain closing conditions before finalization.
The acquisition adds another prominent business figure to The Economist's ownership roster, which already includes Italy's Agnelli industrial dynasty along with members of the Cadbury and Schroder families. The magazine, founded in 1843 by Scottish businessman and politician James Wilson, has evolved from its print origins into a successful digital subscription publication known for its analytical depth and sophisticated style.
Background on Stephen Smith
Stephen Smith has amassed an estimated fortune of $3.6 billion primarily through strategic investments in Canada's mortgage market. He co-founded mortgage lender First National Financial Corp. and acquired additional lending institutions despite predictions of a housing market downturn. This stake in The Economist represents his first significant investment in the media sector, diversifying his portfolio beyond financial services.
The Economist Group's Current Status
The Economist Group encompasses not only the magazine but also its digital platforms including the website, mobile application, and podcast offerings. Additionally, the group includes the Economist Intelligence Unit, which provides research on macroeconomic and geopolitical topics, and event organizer Economist Impact. According to the company's 2025 annual report, The Economist Group employs approximately 1,540 staff across 26 countries, generating revenue of £369 million ($492 million) with an operating profit of about £48 million for the year ending March 31.
The publication has successfully transitioned to a digital-first model, with subscriptions increasing by 3% year-over-year to reach 1.25 million. Digital subscriptions accounted for 85% of new subscription starts, reflecting the magazine's adaptation to changing reader preferences while maintaining its reputation among business and political elites for comprehensive analysis.
Seller's Perspective
Lynn Forester de Rothschild has been seeking to divest her stake as part of a broader restructuring of her investment portfolio. Bloomberg News previously reported her intention to sell, with the transaction now materializing through Smith's acquisition. This ownership transfer continues the magazine's tradition of being held by influential figures while preserving its editorial independence and journalistic standards.
The Economist, which describes itself as a newspaper despite its magazine format, was established by James Wilson as an opponent of Britain's Corn Laws that restricted grain imports to benefit wealthy landowners. Today, it remains a respected voice in global affairs, combining historical legacy with modern digital distribution to reach an international audience of engaged readers.
