GATINEAU – Today, the CRTC approved satellite radio company Sirius XM Canada’s ownership change as it goes from a public traded company to one that is privately held.
The CRTC decision will see Sirius XM Canada allocate nearly $29 million over the next seven years to funds that promote Canadian musical talent, such as FACTOR and Musicaction.
The CRTC release says the transaction, valued at $479 million, is in the public interest because it will ensure the sustainability of the satellite radio service, while supporting the Canadian broadcasting system investments through tangible benefits.
Sirius XM Canada is the sole provider of satellite radio services, with approximately 2.7 million total subscribers across Canada, with broadcasts in both official languages and under the CRTC's policies, tangible benefits, which support the creation, marketing and promotion of Canadian music, may be imposed on transactions resulting in a change of effective control of broadcasting undertakings.
The CBC, which is currently one of three major Canadian shareholders, will divest its financial stake as a result of the transaction.
