Globe and Mail to pay Transcon $31 million

The Globe and Mail has reached a $31-million agreement with Transcontinental Inc. to compensate the printing giant for reduced revenue from the Toronto-based newspaper.
Transcontinental, headquartered in Montreal, announced Tuesday it had renegotiated its 18-year printing contract with The Globe and Mail Inc. — a $1.7-billion agreement that took effect in 2010. In its annual financial statement, Transcontinental said the agreement calls for “a single payment of $31 million to compensate for price reductions on future services for the remainder of the contract.”
“The amount received will be recorded as deferred revenues and recognized in revenues over the next years,” the company said in a statement.
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