MONTREAL – There are few details at this time other than the fact Bell will ask for an exception to keep TSN Radio 690 in Montreal, but Monday morning Astral Media and BCE announced they’ve amended their sale agreement and have submitted a new proposal to the CRTC for approval of Bell's acquisition of Astral. The $3.38 billion purchase price remains unchanged.
Bell also announced that it has formally withdrawn its request to the federal Cabinet for a policy direction to the CRTC which was made in the wake last month’s Commission denial of the first purchase attempt. It has launched a consumer education campaign based at www.canadiansdeservemore.ca.
"We heard Canadians and the CRTC loud and clear – they want assurance that Astral joining with Bell Media will directly benefit consumers and creators. We're ready to deliver more choice for listeners and viewers, more opportunity for content creators, and more competition for the broadcasting industry," said George Cope, Bell's president and CEO, in a press release.
(Ed note: Reading between the lines, one wonders if the company has also heard the complaints from Quebeckers and some of their provincial politicians since the press release made sure to point out that Bell wants to purchase “Montreal-based Astral.” The release also confirmed what the companies had committed to all along, that French-language TV and radio assets would be led by the Astral team headquartered in Montréal, and Jacques Parisien, currently Astral's executive vice-president and COO.)
"Bell and Astral are happy to move forward with a new proposal that benefits all Canadians, in both official languages, in communities large and small across the nation, with new ideas, new funding and new choices,” added Cope in his statement.
In the CRTC’s decision to deny Bell’s initial request to buy Astral, the Regulator noted viewership of media properties jointly owned with other companies (such as Astral’s 50% share of Teletoon) must be included in the calculation, while viewership of U.S. channels available in Canada must be excluded. (The new application, which will be made public by the CRTC likely very early in the new year, will address that and will, it says here, include a number of English language television assets to be divested.)
"The Canadian broadcasting industry is undergoing rapid change, and Astral and Bell are committed to making sure that the consumer always comes first," added Ian Greenberg, president and CEO of Astral Media, showing the executives have certainly heard and understood the Canadians-first message sent by the CRTC when it denied the first deal last month, and at several points since.
"Considering the rapidly changing media landscape, including the accelerating impact of foreign broadcasters on the Canadian media scene, constant investment and innovation is required to develop and showcase the best content and to ensure TV viewers and radio listeners are entertained and informed in the ways that they want. Together, Astral and Bell Media have the scale to invest, compete and deliver on the opportunities ahead for all Canadians,” Greenberg’s statement said.
The companies’ new consumer information campaign, anchored here, presents the Bell-Astral case and answers many questions, too. (Ed note: After examining the site, it looks as though Bell has certainly taken to heart the Commission’s message on the required benefit to Canadian citizens, including radio listeners. What’s left unanswered is just what assets Bell and Astral’s new CRTC application proposes to spin off. However, Canadiansdeservemore.ca talks a lot about French-language television and radio, and nowhere near as much about Astral’s English TV assets. Brands like Family Channel and Teletoon are neither mentioned nor shown, that we could see. Infer from that what you will…)
While originally announced in March and approved by more than 99% of Astral shareholders and the Québec Superior Court, the amendments now made to the terms of the original arrangement agreement between Astral and Bell say the outside date for the closing of the transaction has been extended to June 1, 2013 with each of Astral and Bell having a further right to postpone it to July 31, 2013, reads today’s press release.
The Competition Bureau must also still approve this transaction.
“The new proposal to the CRTC by Astral and Bell addresses the Commission's concerns and sets out the steps the companies would take to comply with the relevant viewership thresholds,” reads the press release this morning. “The proposal also includes a revised package of tangible benefits to support the creation of exceptional Canadian TV and radio content, promote homegrown talent in a multi-platform universe, and foster consumer engagement in the broadcasting system.”
The release also includes a win for Montreal sports fans. The company noted that due to passionate listener response to Bell's earlier proposal to switch TSN Radio 690 (CKGM) to a French sports station, Bell has now instead asked the CRTC for an exception to the Radio Common Ownership Policy to enable the Montréal station to continue to operate as an English-language sports talk radio channel.
Details of the new Astral-Bell proposal will be made available by the CRTC when it launches its public consultation on the application (with a new public hearing), likely early in the new year.
