Archive for May 11th, 2012

Isn’t There a Better Way to Spend $750 Million?

As is the case with all mergers involving Canadian broadcast companies, the proposed Bell Media purchase of television and radio giant Astral immediately generated interest in the Canadian television production community, who anticipated yet another huge payday that follows from each of these deals. The Canadian Radio-television and Telecommunications Commission, which must approve the transaction, requires purchasers to “make clear and unequivocal commitments to provide tangible benefits representing 10 percent of the value of a transaction” (the percentage for television assets is typically 10 percent and 6 percent for radio assets).

Given the rapid pace of consolidation in the Canadian broadcasting industry, the size of these tangible benefits packages, which often provide funding for new Canadian productions, has grown dramatically in recent years. In 2007, Astral’s purchase of Standard Radio led to a $12 million benefits package, Rogers acquisition of five CITY-TV stations resulted in a $37.5 million benefits package, and CTVglobemedia’s purchase of CHUM netted over $100 million. In 2010, Shaw’s purchase of Canwest Global generated a $180 million benefits package. The Bell purchase of CTVglobemedia in 2011 topped that with a $239 million benefits package and now the Bell Media – Astral deal could be even bigger.

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May 11, 2012 6 comments Columns

Isn’t There a Better Way to Spend $750 Million?

Appeared in the Toronto Star on May 6, 2012 as CRTC’s ’10 per cent’ rule leads to questionable expenditures and conflicted policy As is the case with all mergers involving Canadian broadcast companies, the proposed Bell Media purchase of television and radio giant Astral immediately generated interest in the Canadian […]

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May 11, 2012 Comments are Disabled Columns Archive

Copyright Bill Back on the Agenda Next Week

The government has announced that Bill C-11, the copyright reform bill, will be back on the legislative agenda next week with the report stage and third reading set for Monday and Tuesday.

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May 11, 2012 9 comments Must Reads

Chile Considers Pulling out of TPP Because of US IP Demands

Reports from Chile indicate that it is considering pulling out of the Trans Pacific Partnership negotiations due to the U.S. demands on intellectual property.

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May 11, 2012 Comments are Disabled Must Reads