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Lynn Forester de Rothschild, a British philanthropist, has struck a deal to sell her stake in The Economist to a little-known Canadian billionaire.
Lady de Rothschild and her banking dynasty have agreed to sell a 26.9pc holding in the magazine to Stephen Smith, a financial services tycoon whose net worth is estimated at $7bn (£5.2bn) by Forbes.
The value of the stake was not disclosed, but was previously reported to be worth as much as £400m.
The deal marks the biggest shake-up of The Economist’s ownership since 2015, when British education publisher Pearson sold the majority of its 50pc stake alongside its sale of The Financial Times.
Those shares were bought up by Exor, the holding company of Italy’s carmaking dynasty, the Agnellis, which is now the largest shareholder in the magazine with a 43pc stake.
Lady de Rothschild’s stake in The Economist was held through EL Rothschild, a holding company she established in 2003 with her late third husband, Sir Evelyn de Rothschild, whom she married in 2000.
The American-born businesswoman hired advisers at Lazard last year to explore a sale after reportedly pushing for higher returns. The decision to cash in her 20pc holding prompted her family to follow suit.
Lady de Rothschild, who made her fortune in the telecoms industry after founding US broadband firm FirstMark Communications in 1995, is now in a relationship with Lord Saatchi, the 79-year-old advertising guru and former Conservative Party chairman.
The divestment comes at a critical time for The Economist, which was founded in 1843 by James Wilson, a Scottish hat manufacturer, to promote free trade.
Its philosophy is one of editorial independence, and its constitution bans any individual or organisation from owning a majority share, while the editor is appointed by trustees and it does not use bylines.
The weekly title is based in London but has expanded internationally and now employs 1,540 people in 26 countries.
The Economist reported revenues of £369m and a profit of £48m in the year to the end of March 2025. Its subscriber numbers increased by 3pc to 1.25 million.
But the title is now facing searching questions about its future in the digital age. The magazine has begun to shed its traditional anonymous style in favour of personality-led journalism by mounting a major push into video content.
Its political stance as a socially liberal, pro-free-trade title has also come under pressure in an era of growing polarisation.
Zanny Minton Beddoes, who has been editor of The Economist since 2015, extended her tenure by a further two years in October, breaking the tradition of editors holding a 10-year term.
Patrick Foulis, the magazine’s foreign editor, who was widely viewed as heir apparent, stepped down abruptly in the wake of the announcement.
Mr Smith has bought the near 27pc stake through Smith Financial Group, the family holding company he runs.
The 74-year-old tycoon, who grew up in Ottawa but was educated at the London School of Economics, has remained largely out of the spotlight in his home country.
He began his career flipping houses in Toronto in the 1980s before rising interest rates and a string of bad deals forced him into bankruptcy.
In 1988, Mr Smith and his partner started First National Financial Corporation, a mortgage lender that has grown to a market value of more than $2bn.
Mr Smith, who also holds major stakes in Canada Guaranty Mortgage Insurance Company and Equitable Bank, is known for his philanthropy.
He donated more than $100m to Queen’s University Canada, while he is chairman of Historica Canada, a charity dedicated to promoting the country’s history and citizenship.
A spokesman for Mr Smith told Bloomberg: “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.”
A spokesman for The Economist said: “We can confirm that Stephen Smith, together with his family holding company, Smith Financial, has entered into an agreement to acquire a 26.9pc minority stake in The Economist Group from existing shareholders, Lady Lynn Forester de Rothschild, her family and her family foundation, subject to certain closing conditions.”
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