OTTAWA – The CRTC is rethinking the way it approaches tangible benefits and how it determines the value of a transaction in the broadcast world.
On Monday, the Commission called for comments on various aspects of its approach to tangible benefits. Among other things, it is asking for feedback on its preliminary view that at least 80% of tangible benefits for television services should be allocated to specific third-party funds and that the allocation of no more than 20% of tangible benefits should be left to the discretion of the purchaser.
It also seeks comment on its preliminary view that tangible benefits should generally be provided as part of the transfer of ownership or control of all radio and television programming services, and the appropriateness of its current method for calculating the value of the transaction and how to clarify and codify its practices in this regard.
Finally, the Commission asked for suggestions on alternate methods to allocate the value of the transaction among the various assets so that the process can be made simpler, consistent and predictable.
The deadline for comments is December 5 and the deadline for the receipt of replies is December 20, 2013.
