MONTREAL – Bell is buying 100% of CTV in a deal worth $3.2 billion, the telecom giant announced Friday morning.
Bell currently owns a 15% equity position in CTV and will acquire the remaining 85% for $1.3 billion in equity value from The Woodbridge Company Limited, the Toronto-based holding company of the Thomson family; Ontario Teachers Pension Plan; and Torstar Corporation. Including the value of Bell’s present stake, the transaction has an equity value of $1.5 billion. Together with $1.7 billion in proportionate debt, the total transaction value is $3.2 billion. In a separate transaction, Woodbridge will acquire ownership of the Globe and Mail, in which Bell will continue to retain a 15% equity position.
“Acquiring CTV’s range of premier video content enhances Bell’s execution of our strategic imperatives by leveraging our significant broadband network investments, accelerating Bell’s video growth across all three screens – mobile, online and TV – and achieving a competitive cost structure”, said George Cope, president and CEO of Bell Canada and BCE, in a statement. “100% ownership of CTV enables Bell to maximize strategic and operating synergies with CTV, including the efficiency of our content and advertising spend.”
In addition to its 27 station national network, CTV also owns 30 specialty channels, including TSN and RDS; on-line video programming and properties such as CTV.ca, TSN.ca, RDS.ca, MuchMusic.com, MTV.ca and TheComedyNetwork.ca; and CHUM Radio, which operates 34 radio stations throughout Canada.
“Bell’s acquisition of CTV underscores the strength of our #1 conventional, specialty, digital and radio assets, and our leading creative and content management expertise”, said Ivan Fecan, CEO of CTV. “In today’s digital age, it is extremely important to be part of a vertically integrated company that can take advantage of video delivered on multiple screens. CTV has emerged stronger than ever from the recession, and is now perfectly positioned to take advantage of an improving economy. This is the right deal at the right time.”
The transaction is subject to customary approvals, including from the CRTC and the Competition Bureau. Closing of the transaction is expected by mid-2011.
