My finance view

A long-time newspaper executive has been named interim publisher of the Toronto Star and president of Star Media Group.

Don Babick, who has been a member of Torstar’s board of directors since 2004, will step in to replace Jagoda Pike, who is going to head up the Toronto and Golden Horseshoe bid to host the 2015 Pan American Games. The changes take effect on Saturday.

Robert Prichard, president and chief executive officer of Torstar, made the announcement to staff yesterday, saying a national search would begin immediately for the next publisher.

"The Toronto Star will be in excellent and steady hands for this period of transition," he told employees.

Pike, who was appointed publisher in October 2006, said yesterday in an interview that she will miss the pressures of a daily deadline and "the daily chaos."

She acknowledged the financial challenges for newspapers as the industry adapts and changes as Internet use grows.

"These are very interesting and difficult times for newspapers," Pike said. "The Star is not alone. You look across North America, and it’s just been awful times this year and I guess more predicted for next year, unfortunately."

But Pike expressed confidence in the Star. "I know it will find its way to an excellent future," she said.

Babick has extensive experience in the newspaper industry pay day loans. He has been president of Southam Newspapers, president and chief operating officer of CanWest Publications and publisher of papers in Edmonton and Vancouver as well as the National Post in Toronto.

"We are going from strength to strength in going from Jagoda to Don. Both of them rank with the best people in the Canadian newspaper industry," Prichard said in an interview yesterday.

"He knows the paper well. He has enormous respect for the Toronto Star, having competed with it, unsuccessfully, in the past," Prichard said. "He has a strong appreciation of the industry and the Star’s place in it."

Prichard told staff that he expects to make a recommendation on a new publisher by the end of the year.

The Star Media Group includes the Star, thestar.com, Shop TV, Eye Weekly, Sway Magazine, Real Estate News, Desi Life and toronto.com. It also includes Torstar’s interest in the Metro free daily papers and Sing Tao daily.

Torstar shares closed at $11.50 on the TSX yesterday, up eight cents.

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