OTTAWA-GATINEAU – The CRTC has given Cogeco the green light to move forward with its acquisition of Corus Entertainment’s Quebec radio stations.
Friday’s decision included approval of Cogeco’s request for an exception to allow it to maintain a third FM station featuring a talk-radio format in the Montreal market, in addition to the two permitted by the common ownership policy. However, the CRTC refused Cogeco’s request to transform the CKOY-FM Sherbrooke station into a rebroadcasting transmitter of CKAC-AM Montréal, saying this would result “in the loss of a local voice in the Sherbrooke market”. It has asked Cogeco to divest itself of CKOY-FM in order to remain in compliance with the common ownership policy.
Cogeco had already committed to give up the CJEC-FM and CFEL-FM stations in the Lévis/Quebec City market, which renders the transaction compliant for that market, and the CRTC noted that CHLN-FM Trois-Rivières and CJRC-FM Gatineau/Ottawa stations do not raise such concerns with regard to the policy.
Cogeco issued a statement later in the day saying that it was “pleased” with the Commission’s decision, and that the three stations will be put up for sale following the closure of the transaction which it expects will take place on February 1st, 2011.
"We are very happy with the CRTC’s decision, and more confident than ever that it will be highly fruitful for the radio broadcasting system in Quebec and diversity of voices in radio news”, said president and CEO, Louis Audet, in a statement.
As part of the deal, Cogeco also pledged to establish a news agency called Cogeco Nouvelles to feed participating local stations with mainly talk-radio content geared towards information and public affairs, which would allow local stations to focus their resources on local coverage. The agency may also exchange content with small private independent stations and community stations.
The $80 million deal, announced in April, includes 11 radio stations in markets ranging from Montreal to Quebec City to Trois-Rivieres.
