Canadian Billionaire Stephen Smith Acquires Stake in The Economist Group
Canadian mortgage billionaire Stephen Smith has agreed to purchase a significant minority stake in The Economist Group, marking the first ownership shake-up in the storied British current affairs publication in over a decade. The transaction represents a strategic move by Smith into the media landscape following his substantial success in Canada's financial sector.
Details of the Acquisition
Smith and his family holding company, Smith Financial Corp., will acquire the entire 26.9 percent stake currently held by Lynn Forester de Rothschild, her family, and her family foundation. Representatives for both companies confirmed the agreement in emailed statements, though the financial terms of the transaction remain undisclosed. The deal is subject to standard closing conditions and regulatory approvals.
This acquisition follows reports from The Horizont website that Smith was actively seeking to purchase the stake. Forester de Rothschild has been pursuing the sale as part of a broader, long-term restructuring of her investment portfolio, according to previous Bloomberg reports.
The Economist's Ownership Structure
The deal introduces another prominent billionaire to The Economist's distinguished list of owners, which already includes Italy's influential Agnelli industrial dynasty along with members of the Cadbury and Schroder families. Founded in 1843 by Scottish businessman and politician James Wilson—an opponent of Britain's restrictive Corn Laws—The Economist has evolved from its print origins into a successful digital subscription model.
Despite describing itself as a newspaper, the publication has become renowned for its long-form analysis and sophisticated editorial style, maintaining strong appeal among global business and political elites. The Economist Group encompasses not only the magazine but also its website, mobile applications, podcasts, the Economist Intelligence Unit research division, and event organizer Economist Impact.
Stephen Smith's Background and Fortune
This investment marks Smith's first major foray into media ownership. The Canadian billionaire built his estimated US$3.6 billion fortune primarily through strategic investments in Canada's mortgage market. He co-founded mortgage lender First National Financial Corp. and acquired additional lending institutions, defying predictions of an impending housing market collapse.
Smith's business acumen has been demonstrated through various high-profile transactions, including the recent sale of First National to Brookfield and partners in a $2.9 billion deal. He has also strengthened his family office by hiring former TD banker to lead operations.
The Economist's Financial Performance
According to The Economist Group's 2025 annual report, the organization employs approximately 1,540 staff across 26 countries. The company reported revenue of £369 million (approximately US$492 million) with an operating profit of about £48 million for the fiscal year ending March 31.
The publication's subscription base grew three percent year-over-year to reach 1.25 million, driven largely by digital subscriptions which accounted for 85 percent of new subscriber acquisitions. This digital transformation has positioned The Economist as a leader in the evolving media landscape, successfully adapting to changing reader preferences while maintaining its editorial integrity and global influence.
The acquisition represents a significant development in media ownership, bringing together one of Canada's most successful financial entrepreneurs with one of the world's most respected publications. As The Economist continues its digital evolution under new partial ownership, industry observers will be watching closely to see how Smith's financial expertise might influence the publication's future direction while preserving its distinctive editorial voice and global reputation.
