Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
Exclusive

Wattpad chose Halifax over Calgary for second HQ citing Wexit and cuts to Alberta’s tech tax credits

By Zane Schwartz
Wattpad co-founder and CEO Allen Lau speaks onstage at the WIRED Business Conference 2015 at Museum of Jewish Heritage on May 12, 2015 in New York City. Photo: Brad Barket/Getty Images for Wired
Dec 9, 2019
A A
A Small A Medium A Large
Share

Share

Wattpad chose Halifax over Calgary as the site of its second headquarters, citing concerns about Western separatism and cuts to Alberta’s tax credits for tech companies, The Logic has learned. 

On Tuesday, Wattpad announced it was building a new office in Nova Scotia. Calgary had been among the cities bidding to host the company.

Talking Point

Wattpad chose Halifax over Calgary as the site of its second headquarters, citing concerns about Western separatism and cuts to Alberta’s tax credits for tech companies. Alberta has frozen its investor tax credit program, which offered a 30 per cent credit to private investors putting money into companies working in the innovation economy. And in recent months, there’s been increased discussion of Western provinces separating from Canada.

At a forum in Lake Louise on November 29, Calgary Economic Development (CED) CEO Mary Moran told a group of Alberta business leaders, “We, as an organization, just lost a 1,000-person company that didn’t come to Calgary, selected another city, because they’re concerned about Wexit.” Moran declined to identify the company at the time. 

The Logic has learned that company was Toronto-based Wattpad, a tech firm with fewer than 200 employees that hosts user-generated fiction; the platform has over 80 million monthly users. According to a source familiar with the negotiations but not authorized to speak publicly, the firm outlined its concerns in a written statement sent to CED. 

Earlier this year, Wattpad issued a request for proposals to cities interested in housing its second headquarters. Candidates had to be within a three-hour flight of Toronto and have fewer than 1.5 million people, according to a Globe and Mail report. CED submitted a proposal. 

In August, Alberta Premier Jason Kenney’s United Conservative Party (UCP) government froze the Alberta investor tax credit program, which offered a 30 per cent credit to private investors putting money into companies working in the innovation economy. 

And there’s been increased discussion of Western provinces separating from Canada since the October 21 federal election, which saw Prime Minister Justin Trudeau’s Liberals re-elected as a minority while failing to win a single seat in Alberta or Saskatchewan. 

Moran did not directly respond to questions about whether Wattpad raised concerns beyond Wexit and the tax changes. “We were grateful for the opportunity to respond to Wattpad’s Request For Proposal and congratulate Halifax on its success,” she told The Logic.  

“We are excited that Wattpad has chosen Halifax, recognizing our city’s talent, location and cost advantages,” said Halifax Mayor Mike Savage on on Tuesday.

Wattpad declined to respond directly to The Logic’s questions. “We don’t have any comment about the cities we spoke with for this process,” said spokesperson Kiel Hume.

Wattpad’s RFP said it would prefer a host city willing to help secure government subsidies, according to The Globe. Halifax’s bid was a joint initiative that included Dalhousie University, the Atlantic Canada Opportunities Agency, Nova Scotia Business Inc. (NSBI) and the innovation hub Volta, Volta CEO Jesse Rodgers told The Logic Tuesday. 

“[Wattpad] was looking to an ecosystem that compliments their personality as an organization. I know Allen and Eva [Lau, Allen’s spouse and Wattpad’s former head of community], both are interested in the smaller cities—the Winnipegs, the Edmontons,” said Rodgers, whose incubator will house Wattpad in early 2020 until it grows big enough to require standalone office space. 

On December 5, Volta announced Eva Lau would join its board. Wattpad and Lau did not respond to inquiries about whether her board appointment was related to Wattpad’s involvement with Volta. Emails to Lau and to Wattpad elicited a response from Rodgers instead, who told The Logic Lau’s appointment was unconnected to Wattpad moving into Volta. He said her position is unrelated to will be unpaid and that she has been an active member of the Volta community since at least 2018, prior to when the request for cities to bid was sent out.

“If you think about Wattpad back when they were starting, they were one of the first companies to say, ‘We can do this in Toronto,’” said Rodgers. “I think they like the early part of an ecosystem. They can really add a lot to the ecosystem.”

NSBI offers several business incentives for firms operating in Nova Scotia, including payroll rebates and an “innovate to opportunity” program, which provides up to 35 per cent of the salary of a new graduate working in tech. It would not comment on whether Wattpad has indicated it would apply, or whether it has already been offered incentives under these programs. “NSBI does not discuss whether anything is in the works – that’s not how good business is conducted,” said spokesperson Shawn Hirtle.

Alberta’s previous NDP government set up a series of programs designed to encourage tech firms to grow in the province, but the UCP cancelled many of them since taking power after April’s provincial election. They have so far ended a $5-million tax credit for capital investment, and credits for scientific research and economic development as well as interactive digital media tax credits. All in, the government claimed those cancellations would save over $400 million by 2022–2023. Kenney’s office did not reply to a request for comment. 

With files from Catherine McIntyre

#Calgary Economic Development #Jason Kenney #Naheed Nenshi #Wattpad

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

Photo: Brad Barket/Getty Images for Wired

Most Popular This Week

A shot of a placard on a table reading "Let Alberta Decide." There is a person out of focus in the foreground wearing a cowboy hat.
The Big Read

What Alberta’s corporate heavyweights really think about separation

By Meghan Potkins
Carney and Trump at a photo op in Sharm El-Sheikh, Egypt, against a white backdrop that features a peace-themed logo for the gathering. Carney is leaning toward a scowling Trump and pointing his index finger at the U.S. president.
News

The U.S. has chosen not to extend CUSMA. Here’s what happens next

By Joanna Smith
A person in glasses and a blue top is sitting and typing on a laptop in an office. A desktop screen next to the laptop displays some blurred-out coding work.
News

A niche white-collar role is becoming the AI industry’s hot new job

By Anita Balakrishnan
A logo that reads AI in blue lettering against a light yellow background.
News

What happened when a VC firm let AI do almost everything

By Catherine McIntyre

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

Nakisa CEO Babak Varjavandi in a screencapture from the floor of a tech show. He's wearing a suit jacket and open-collared shirt.
News

Canadian firms are ready to help with digital sovereignty. Their challenge is getting approved

By Laura Osman

Briefing

Radical Ventures leads US$130M financing for AI model maker Prime Intellect

By Murad Hemmadi   |   Jul 9, 2026 | 3:58 PM ET

Intact warns of larger-than-expected losses from extreme weather and fire claims

By Anita Balakrishnan   |   Jul 9, 2026 | 3:55 PM ET

Quebec government greenlights 50-year, $2.5B energy deal with Innu community

By Martin Patriquin   |   Jul 9, 2026 | 3:32 PM ET

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

The Big Read

What Alberta’s corporate heavyweights really think about separation

By Meghan Potkins   |   Jul 2, 2026
A shot of a placard on a table reading "Let Alberta Decide." There is a person out of focus in the foreground wearing a cowboy hat.
News

A niche white-collar role is becoming the AI industry’s hot new job

By Anita Balakrishnan   |   Jun 30, 2026
A person in glasses and a blue top is sitting and typing on a laptop in an office. A desktop screen next to the laptop displays some blurred-out coding work.
News

What happened when a VC firm let AI do almost everything

By Catherine McIntyre   |   Jun 29, 2026
A logo that reads AI in blue lettering against a light yellow background.
News

Carney’s new deal for B.C. paves way for West Coast pipeline

By David Reevely and Meghan Potkins   |   Jul 2, 2026
Workers position pipe during construction of the Trans Mountain pipeline expansion in Abbotsford, B.C., in May 2023.
Analysis

Canada’s ETF industry is almost a trillion-dollar business

By Chaimae Chouiekh   |   Jul 3, 2026
Despite a down year a sign board displays the TSX's upbeat close on the final day of the year, in Toronto's financial district on Monday, Dec. 31, 2018.
Analysis

It turns out Trump does need something from Canada—aluminum

By Joanna Smith   |   Jun 25, 2026
A close-up of a made-in-Canada stamp on the end of a cylindrical piece of raw aluminum.

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account