TORONTO – Canwest Broadcasting interim president Peter Viner told staff in a memo today that while there has been interest in the company’s small chain of E!-branded TV stations, it will wait until after this summer to decide what it will do with the stations.
With employees reporting recent visits to some of the TV stations by several “anonymous suits,” one such employee told Cartt.ca Viner likely felt it was time to re-address the troops and provide an update. Canwest announced earlier this year that it is attempting to sell the stations [Hamilton (CHCH), Victoria (CHEK), Montreal (CJNT), Red Deer (CHCA) and Kelowna (CHBC)] as the company no longer considers the secondary network a core asset and they were and are bleeding cash.
“Since we announced our review, the challenges facing conventional television markets have increased as reflected by the fact that our largest competitor has announced the closure of three stations,” wrote Viner. “We have taken a different route but the challenge is no less daunting as we determine whether the stations should be reformatted, sold or closed.
The sale process has generated some interest in the stations (Cartt.ca has confirmed some of this interest at least locally in Hamilton, where at least two groups have been in for a site inspection and there is thought to be up to two internal groups with ideas for CHCH) “although it is still too early to say whether any of these will result in a sale,” wrote Viner.
“Over the coming weeks we expect potential buyers will complete the due diligence required in a purchase, which may include meetings with management and site visits at some locations.”
So, the strategic review process will be extended, right through the regulatory review of Canwest’s, CTV’s Citytv’s and TVA’s broadcast licence coming at the end of April.
“In the meantime, while we are committed to this process we will continue lobbying the federal government and the CRTC to correct the structural imbalance that is undermining local television and favouring cable and satellite companies,” writes Viner.
“We will wait until both of these phases are completed before considering our options. This means that any decision regarding the future of these stations is unlikely to come until the end of the summer. Throughout this period, we remain committed to our programming strategies, our customers, and our employees,” he continued.
“In particular, we will provide you with as much clarity regarding the future of these stations as possible.”
– Greg O’Brien
