Canadian media & the CRTC

[Darkstar416]

Pretty crazy if it is true. If it is, Bell Globemedia will nudge ahead of CanWest Media Works as the biggest media entity in this country. Far too big if you ask me. There'd also have to be a huge sell-off of stations in many markets to abide by CRTC rules and such. I can see why they'd want the specialty channels, but buying the broadcast division will be one huge headache.

BREAKING NEWS -- Bell Globemedia Purchases CHUM

Globeandmail.com, the Globe and Mail's website, quotes sources as saying Bell Globemedia is buying TV and radio broadcaster CHUM Ltd.

Shares in CHUM were halted Wednesday morning on the Toronto stock market, pending news.

CHUM's holdings include Toronto-based Citytv. Bell Globemedia owns CTV and the Globe and Mail. CHUM owns 33 radio stations, 12 local television stations and 21 specialty television channels.

CHUM founder and controlling shareholder Alan Waters died in December. At that time his son Jim, CHUM's chairman, said the family was not interested in selling the company.

The Waters family controls about 90 per cent of CHUM stock.

 

[spmarshall]

Holy media convergence, Batman!

This is unsettling news. CHUM has been pretty good as a fourth media mini-empire, providing an alternate to CrapWest Global and CTV (which has become another Global, IMO), and the public CBC (where I get most of my televised news and documentaries). CTV is much more conservative than CHUM (ever watch CTV News lately?), so that leaves CBC as the only non-Harper lovin' TV network.

Who would pick up the scraps? Quebecor, or Rogers? (shudder!)

 

[spmarshall]

Looks right to me.

TORONTO, July 12 /CNW/ - The following issues have been halted by Market Regulation Services (RS):
&nbsp &nbsp &nbsp &nbsp
Issuer Name: CHUM Limited
TSX Ticker Symbol: CHM, CHM.b
Time of Halt: 9:22 EST
Reason for Halt: Pending News

 

[elook]

Somebody call the regulators...this is going to be tricky.

They'll have multiple broadcast properties in the same city, multiple competing specialty channels.

Me, I don't get it.

 

[andreapalladio]

Beppi will be able to get a whole Law Page column out of which lawyers were giving which advice to whom on this!

 

[Ed007Toronto]

So after all the money spent on MTV Canada CTV will now have to sell it in order to get Much. What will happen to the Concert Hall I wonder.

 

[bizorky]

Can anyone post what the present ownership makeup of BGM is?

 

[Ed007Toronto]

Woodbridge (Thomson family) 40%
Torstar 20%
Ontario Teachers' Pension Plan 20%
Bell 20%

 

[Darkstar416]

The more I think about this the less sense it makes unless they just want to have bragging rights as being "Canada's biggest media conglomerate."

Perhaps if this goes through, the broadcast division (City-TVs, A-Channels, radio stations, etc) could be taken over by TorStar with Bell Globemedia keeping "most" of the specialty channels.

 

[spmarshall]

Woodbridge (Thomson family) 40%
Torstar 20%
Ontario Teachers' Pension Plan 20%
Bell 20%

That's as proposed - has not yet been approved.
Currently, it is BCE: 68.5%, Woodbridge: 31.5%

 

[elook]

Press Release

Looks like they plan to spin off and sell A-Channel. Maybe Torstar would be interested in that one...other than that it's a $1.7billion deal.

 

[Darkstar416]

In the Toronto market as an example, they'd still own CFTO and CITY-TV, even after disinvesting in A-Channel Barrie. The CRTC's stance up until now is that an owner can have two channels compete in the same general market (ie. A-Channel Barrie and City-TV Toronto or Global Ontario and CH Hamilton), but not compete in the exact same market (as will be the case with CFTO and CITY-TV).

If they were allowed to continue to own both, I'd imagine news programming will be stripped from CITY in favour of lifestyle programming so as not to compete with the #1 rated CTV Toronto News.

All said, it's pretty horrible news and makes our industry consolidated in such a way that must make Michael Powell jealous.

 

[spmarshall]

Not to mention that CTV will have both NewsNet and CP24 (which would be dumped to Torstar or someone else?)

I agree, this is awful news. As for #1 CTV Toronto News, that's awful news as well (why the hell is that #1 - oh, because Global is worse, and CBC twice configured Canada Now/local news and messed with its formula?)

 

[Darkstar416]

Global Ontario's News is now surprisingly #2 in the Toronto market, with City-TV in at #3 and CBC at a distant #4.

I suppose CP24 could be re-launched as CTV Newsnet Toronto or something. This will also probably mean a lot of jobs leaving downtown T.O. for Agincourt. >:

The Znaimer Factory Lofts anyone?

 

[elook]

The layoffs are now coming in as well. CityNews across the country is axed, save for Toronto. A-Channel News in Barrie is scaled back. 281 people out of work, mostly out west.

Sad.