OTTAWA – BCE’s proposed tangible benefits associated with its bid for CTV’s television broadcasting assets “falls way short of the mark of what is expected under the CRTC’s tangible benefits policy”, says the Canadian Media Production Association (CMPA).
The organization representing the interests of English-language screen-based media companies in Canada said that it warned the Commission during the Shaw/Canwest proceeding that bending on the tangible benefits policy could de facto establish a new standard.
“It is clear that BCE has mirrored its application to that of Shaw/Canwest,” said CMPA president and CEO Norm Bolen, in a statement. “Bell’s acquisition of CTV is a strategic move to better position itself to succeed in the digital economy. The Canadian independent production sector is a key component of Canada’s digital economy, and BCE should do everything it can to support our sector.”
The CRTC’s tangible benefits policy calls for a minimum of 10% of the value of the acquired television assets. After originally suggesting that no tangible benefits should be required, BCE recently proposed a package worth $220.8 million. BCE is acquiring the 85% of CTV that it doesn’t own in a deal valued at $3.2 billion ($1.7 billion of which is debt).
The CMPA said that it “fully expects to intervene” when the CRTC begins its hearing into the proposed acquisition next February.
