A lot of what we've heard has been the opposite equation of what you are saying, where the bigger outlets say they can't compete because if it's national or international news, everybody gets it off their Facebook or the Internet, and it's only the local news—what's happening in their neighbourhood—where they have to go to local papers.
Torstar, for example, is bleeding red ink on their major flagship publication, the Toronto Star, and, anecdotally, all of that survives off the money they get from their local publications.
We've heard a lot of evidence suggesting the opposite: that local is the one thing that is viable, at least on the print media side of things.