CRTC approves Arsenal, Cogeco, radio swap

The CRTC approved two separate applications by Cogeco Inc. and Arsenal Media which would essentially see the two companies swap several radio stations in Quebec. In the first application, Cogeco requested to acquire Arsenal Media’s French-language commercial radio station CILM-FM Saguenay, which operates in Chicoutimi, Que. The purchase price for the assets of the station is valued at $600,000, according to the CRTC’s decision, issued Friday. Cogeco proposed a transaction value of $814,929 and committed to pay a tangible benefits package of $48,896. “According to Cogeco, the acquisition of the station by a major Quebec broadcaster should strengthen CILM-FM’s financial position and enable it to benefit from greater synergies. The two stations (CILM-FM and CKYK-FM Saguenay) would share the same premises in Saguenay and the same local advertising sales team,” the CRTC wrote in its decision. The CRTC noted that it received interventions in favor of the transaction because CILM-FM has been experiencing financial difficulties for several years. “The interveners are reassured by Cogeco’s motivation to give this station a second life. They say they are confident that Cogeco’s plans to revitalize the station will benefit the Saguenay region, its citizens, business people and artists, as well as the Quebec radio system,” the commission wrote. The CRTC approved Cogeco’s proposed $48,896 tangible benefits package and will dole out $24,448 to Fonds Radiostar or Radio Starmaker Fund; $12,224 to Musicaction or FACTOR; $8,149 to any eligible Canadian Content Development (CCD) project; and $4,075 to the Community Radio Fund of Canada (CRFC). In the second application, Arsenal Media requested to acquire Cogeco’s French-language commercial radio stations CHGO-FM Val-d’Or, and CHOA-FM Rouyn-Noranda. The purchase price for the assets of the three stations was valued at $1,500,000, according to the decision. Arsenal proposed a value of the transaction of $2,195,489 and proposed a tangible benefits package of $131,729. “The Commission is of the view that the transaction should have a positive impact on the diversity of voices, since it would allow for the development of an independent broadcaster that would expand its presence in another region of Quebec,” the CRTC wrote in its decision. “Moreover, the programming broadcasted by Arsenal, which differs from that of the major groups whose programming comes in part from Montreal, should give certain musical content new exposure.” The commission noted it received an intervention from the Association québécoise de l’industrie du disque, du spectacle et de la vidéo (ADISQ) which supporting the transaction by stating that “independent and intermediate broadcasters have a positive impact on the diversity of voices, because they present regional programming that includes a strong focus on French-language and local music.” Arsenal’s proposed tangible benefits package of $131,729, which makes up six per cent of the proposed value of the transaction, was approved by the CRTC. Three per cent, ($65,865) will be allocated to Radio Starmaker Fund or Fonds Radiostar; 1.5 per cent ($32,932) will be allocated to FACTOR or Musicaction; one per cent ($21,955) will be allocated to any eligible CCD initiative at Arsenal’s discretion; and 0.5 per cent ($10,977) to the CRFC.

CRTC approves Arsenal, Cogeco, radio swap

Brief | March 25, 2022

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CRTC approves Arsenal, Cogeco, radio swap

Brief | March 25, 2022

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