CRTC approves Cogeco acquisition of Corus stations

The CRTC announced Friday it has approved Cogeco Inc.’s acquisition of Corus Entertainment Inc.’s 11 Quebec radio stations and agreed to an exception to operate a third FM station in the Montreal market. “The Commission is of the view that Cogeco’s proposal, together with the arguments raised by the parties, forms a package of inextricably linked elements justifying the requested exception,” the commission said in a release. “The Commission also took into consideration the particularities of the Quebec radio market, including the marked preference of listeners for the FM band and the progressive abandonment of the AM band.” The commission said the bilingual nature of the Montreal market supports its decision to grant the exception. “Among other factors, the Commission notes that, as indicated by Cogeco, though it is difficult to quantify, the significant migration of French-language listeners to English-language stations is indeed a reality in the Montréal radio market,” the commission said. During a hearing on the acquisition in September, Cogeco said it would abandon the transaction if it wasn’t granted an exception to operate a third Montreal French-language music station, CKOI-FM. The station represents about half of the transaction’s value, and is one of the four profitable stations involved in the transaction. The CRTC’s ruling, which allows Cogeco to own three FM and one AM stations in Montreal, goes against the commission's ownership policy. The policy says a company cannot own or control more than two AM and two FM stations operating in the same language in a large radio market. Although the commission approved the Montreal exception, it refused a request by Cogeco to rebrand sports station CFOY-FM Sherbrooke into a rebroadcasting transmitter of CKAC-AM Montreal. The commission said approving the request would have resulted in the loss of local content in the Sherbrooke market. Cogeco will be required to sell the station, as well as CJEC-FM and CFEL-FM stations in the Lévis/Quebec City market, to comply with the common ownership policy. The commission said the transaction will help ensure a diversity of information programming in Montreal and Quebec. Cogeco has committed to establish a new news agency that will generate local content for the stations as part of the transaction. The company will also have to propose a $1.6-million tangible benefits plan to support the Canadian broadcasting system. CRTC commissioner Tim Denton published a "concurring opinion." He said it would have been preferable to hold a hearing on whether a policy change on common ownership is required or desirable before making a ruling. news@thewirereport.ca

CRTC approves Cogeco acquisition of Corus stations

Broadcast | December 17, 2010

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us