TORONTO – Recognizing that there was probably no way out of last week’s CRTC decision that disallowed the purchase of the Citytv franchise by CTV (a story first broken by Cartt.ca), CTVglobemedia agreed today to sell the five stations to Rogers Media for $375 million.
Today’s deal scraps an earlier agreement that had Rogers acquiring the secondary market A Channels (Barrie, London, Wingham, Windsor and Ottawa Ont., as well as Victoria B.C.), which CTV will now hang onto. Rogers new stations will be Citytv Toronto (CITY-TV), Citytv Winnipeg (CHMI-TV), Citytv Edmonton (CKEM-TV), Citytv Calgary (CKAL-TV) and Citytv Vancouver (CKVU-TV).
The deal, if approved, makes Rogers a formidable broadcast presence from Toronto, westward and a serious local force in most of Canada’s largest communities. In Toronto, it will have the OMNI.1 and OMNI.2 ethnic stations as well as Citytv. In Winnipeg, it will have its OMNI religious broadcaster and Citytv Winnipeg. On Friday, the CRTC approved new ethnic broadcast outlets for Rogers Media in Edmonton and Calgary, to go with Citytv in both cities. Finally, Rogers will have City Vancouver to add to religious station OMNI B.C.
Unlike CTVgm, Rogers will most likely be allowed under current Commission rules to own the stations because the existing Rogers stations are not English language commercial stations but ethnic and religious outlets. CTV’s plan violated the existing policy against a single company owning a “twin-stick” operation – two English commercial stations – in a single market.
The former CHUM Ltd. assets are currently under the control of lawyer John McKellar, C.M., Q.C., trustee under a voting trust agreement in respect of CHUM. The transaction is subject to CRTC and Competition Bureau approval as well as the satisfaction of the other conditions of approval for CTVglobemedia’s acquisition of effective control of CHUM Limited as per the CRTC’s June 8th, 2007 decision.
"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," said Rael Merson, president, Rogers Broadcasting, in the RCI press 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. The combination of our existing television properties with the Citytv stations gives us a formidable national television platform that will continue our proud tradition of service to local communities and our desire to contribute to the Canadian broadcasting system."
"Rogers came in with a very strong offer on a pre-emptive basis, which will see the Citytv stations in a fine home in a timely manner. This outcome is good for both the businesses and the stations’ employees," said Ivan Fecan, CTVglobemedia president and CEO, in a release. "We know Rogers to be skilled operators of television assets and believe they will be good stewards of these important urban brands."
The all-cash transaction is expected to close late in 2007.
"We are embracing (the Commission’s) decision,” said Fecan in the CTV press release. “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.”
Besides the A Channels and CHUM’s radio division, CTVgm will also retain provincial educational broadcaster Access Alberta and all of CHUM’s specialty channels: MuchMusic, MuchMoreMusic, MuchMoreRetro, MuchLoud, MuchVibe, PunchMuch, Razer, CP24, Space, Bravo, SexTV, TVLand, Drive-In Classics, FashionTelevisionChannel, and Star!
It is also looking to divest Canadian Learning Television and CKX Brandon, a CBC-TV affiliate. “CTVgm will announce its intentions for these stations in the next few days,” says the press release.
It’s not known yet how or if the CHUM group will be split up, given that many CHUM specialties run programming made by and for Citytv. For example, how FashionTelevision (the show on Citytv) and FashionTelevisionChannel will work as separate companies was addressed in the announcements, nor was the fate of iconic Toronto landmark, The CHUMCity Building.
At 299 Queen St. E. in Toronto, the Industrial Gothic building originally constructed around 1915 features open-concept studio spaces which have been copied world-wide, as well as its Speakers Corner and numerous street-level interviews, concerts and viewer interaction. The building is synonymous with both MuchMusic (which will belong to CTVgm) and Citytv (which will be Rogers’).
One would think there will be plenty of co-operation between Rogers and CTVgm running their new assets, going forward.
The previously announced sale of CHUM’s interest in specialty stations MusiquePlus and MusiMax to Astral Media will also go forward.
– Greg O’Brien
