Rogers Media to buy Citytv stations
Last Updated: Tuesday, June 12, 2007 | 7:46 AM ET
The Canadian Press
Rogers Media is buying the five Citytv television stations CTVglobemedia Inc. was ordered to sell in an all-cash deal valued at approximately $375 million.
The companies said late Monday the deal replaces a previously announced agreement where CTVglobemedia Inc. was to sell the A-Channel stations and certain specialty channels to Rogers Media.
The stations being sold include Citytv in Toronto, Winnipeg, Edmonton, Calgary and Vancouver.
"The acquisition of the Citytv stations will significantly expand our television operations and solidify our position as an important participant in the Canadian television industry," Rael Merson, president of Rogers Broadcasting, said in a release.
"It gives Rogers an instant and significant television presence in the largest markets in the country and is a natural complement to our existing television broadcasting and specialty assets."
Ivan Fecan, president and CEO of CTVglobemedia Inc. and CEO of CTV Inc., said Rogers came in with a "very strong offer on a pre-emptive basis ... This outcome is good for both the businesses and the stations' employees."
The deal is subject to regulatory approvals and the transaction is expected to close late in 2007.
CTVglobemedia was ordered by the Canadian Radio-television and Telecommunications Commission last week to sell off the five Citytv stations as a condition for approval of its $1.7-billion purchase of CHUM's network of radio and TV stations.
The CRTC gave the network 30 days to table acceptable plans for the sale.
The federal regulator said that since CTV already has conventional stations in Toronto, Vancouver, Edmonton, Calgary and Winnipeg, it cannot keep CHUM's Citytv stations in those markets.
The City stations are among the most important assets in the CHUM chain, which also includes 33 radio stations and 21 specialty cable channels.
CTVglobemedia's CTV division operates 21 conventional television stations across Canada and has interests in 15 specialty channels.
"The purpose of the policy is to maintain diversity of voices within the Canadian broadcasting system," said commission chairman Konrad von Finckenstein.
He conceded that the commission has granted exemptions to the so-called "twin sticks" policy in the past, but said those were in secondary markets and as a last resort to save stations from going dark.
Accepts decision
CTVglobemedia said in a separate release Monday it has accepted the CRTC's June 8 ruling, regarding what it called "effective control of CHUM Ltd.
"We are embracing this decision. The people of CHUM Limited have been in limbo for almost a year and it is in everyone's best interest to move forward and build a stronger company from the combination of CTV and CHUM," said Fecan in a statement.
CTVglobemedia said it will keep the A-Channels and Access Alberta and that the previously announced sale of CHUM's interest in specialty stations MusiquePlus and MusiMax to Astral Media will also go forward, the company said.
CTVglobemedia said it will keep all other CHUM assets with the possible exceptions of specialty channel Canadian Learning Television and CBC affiliate CKX-TV, Brandon.
The company said it will announce its intentions for these stations in the next few days.
CTVglobemedia is owned by a group that includes the billionaire Thomson family's private Woodbridge Co., Torstar Corp. (TSX:TS.B), the Ontario Teachers' Pension Plan and BCE Inc. (TSX:BCE).
Rogers Media is a division of Rogers Communications (TSX:RCI.B). Its holdings range from dozens of radio stations and specialty TV channels such as Omni and Rogers Sportsnet to Maclean's and Chatelaine magazines and the Toronto Blue Jays.
