Rogers to buy Citytv stationsFrom the Financial Post. Full article here.
CTV to get $375-million for 5 stations
Financial Post
Published: Monday, June 11, 2007
Rogers Communications Inc. is buying the five local Citytv stations after the broadcast regulator said it would not allow CTV Inc. to buy CHUM Ltd. without the sale of those properties.
Rogers and CTVglobemedia said the five stations -- in Toronto, Winnipeg, Edmonton, Calgary and Vancouver -- would go to Rogers for $375-million. The purchase would give Rogers an instant presence in what it calls a "formidable national television platform."
In the wake of the CRTC rejection (or conditional approval, depending on how you look at it) of the CTV takeover, this replaces the previous deal where Rogers was going to buy the A-Channels. CTV will now keep those.
What does it mean? Nobody knows. But here's a few nuggets for thought:
299 Queen Street West -- the main Citytv building, houses all the specialties like Space, Muchmusic, Bravo! etc. Now they'll be owned by a different co. than Citytv. Presumably either the stations or the specialties will have to move.
CHUM has always relied on cross-pollination - Camera guys would be shooting for Fashion TV one day, Much More Music or Star! the next. As an insider told me earlier today in Banff, "it's going to be like trying to separate conjoined twins."
CHUM has always bought shows with a specialty (Space, Bravo!) and terrestrial (Citytv, A-Channel) component. Now that presumably goes away. Where will the envelope come from? How big will it be? Does the benefits package go away now? Will CTV operate A-Channels or turn them CTV? Will we be left with small local programming spends from Citytv?
Considering the fact that they just announced the largest slate of indigenous programming of any of the Canadian Private Networks, that can't be good?
Does anyone know what's out there? Just nod if you can hear me. Is there anyone home?
Daddy needs to get Comfortably Numb now.
5 comments:
While admitting a serious ignorance in these types of matter, reading this just now gave me a deeply negative gut feeling.
personally, i don't get why ctv should not be allowed to keep all of the specialty channels--since ctv has nothing similar to any of these channels, it could not be considered monopolizing. the a-channels, however, should go to rogers. if ctv acquires them, they're just going to be absorbed, and likely brought to scarborough.
the only close cousins are mtv canada and the "muches", and those channels (since mtv's license doesn't allow music video broadcasting) aren't really that similar at all.
a lot of the CRTC's decisions (not just in this case) seem rather arbitrary, and don't seem to benefit anyone... other than continuing to justify it's existence. in this case, the decision (or non-decision?) seems more ludicrous than judicial.
i for one would like to see citytv news and much music remain downtown--that building is much (pun intended) of what makes toronto the place it is today. the other specialty channels--if they remain in the deal--moving out to scarborough would be a bright idea, and would give ctv something to do with the building currently rented by sportsnet once they skedaddle to their new offices.
as a ctv employee, i certainly wouldn't mind babysitting space, book, bravo!, and drive-in classics.
...just sayin'.
_At a pure uniformed guess, I would expect CTV to convert the downtown Queen St location into an MTV-led combined entertainment hub with upper floor panoramic windows & big neon signages+ like we see at Times Square, NY or with entertainment style shows from LA. With newer studios for Comedy tapings etc.
_I could then imagine them swapping their current N. of Yonge Concert Hall location to Rogers.
_And selling the Chum radio location to developers. +(moving that famous sign upto the Queen St. locale). Nifty would be also buying and tranferring the nameless Sam the Record Man sign too.
Duncan,
You should really read the reports; a lot of what you were saying was not really at issue.
The CRTC laid out a very clear decision: we will not approve you owning Citytv. You can keep the A-Channels.
that's what the deal is in aid of. The specialties were never at issue.
ah. thanks for the correction, denis.
(and good to hear!)
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