OTTAWA and MONTREAL – The CRTC has given the go-ahead to Quebecor Media’s TVA Group to buy French-language specialty channels Évasion and Zeste as part of its acquisition of parent company Serdy Media.
The proposed $24 million deal, announced in May, also includes the Serdy Video group of companies. CRTC approval was required for the change in the ownership and effective control of the two discretionary television services.
The Commission said Monday that it has determined that the deal is in the public interest, noting that Zeste and Évasion stand to benefit from Quebecor and TVA’s multiplatform exposure and reach, and that “(t)he combination of Quebecor and Serdy’s resources and experience could foster the production of quality French-language programs and the promotion of Canadian talent.”
The decision also increased the tangible benefits package to $1,793,756 (Quebecor had proposed $1,792,784) and directed Quebecor to file, as a condition of approval, an agreement with the Canada Media Fund, Telefilm Canada and the Quebecor Fund confirming that the tangible benefit funds will be used for the scripting and development of French-language concepts. That agreement must be filed no later than February 13, 2019.
Also as a condition of approval, Quebecor was ordered to file applications to include Zeste and Évasion on TVA Group’s list of discretionary services, to amend Zeste’s and Évasion’s conditions of licence to reflect those in effect for TVA Group’s other discretionary services, and to amend Évasion’s licence term so that it ends on 31 August 2022. That filing is also due by February 13.
Évasion and Zeste will join LCN, TVA Sports, addikTV, CASA, MOI ET CIE, Prise 2 and Yoopa, bringing TVA Group's family of specialty services to nine channels. TVA said that it expects to close the transaction within weeks, once all conditions of approval have been satisfied.
“The addition of Évasion and Zeste will further diversify TVA Group's offering of television content for viewers and advertisers”, the company said in a statement. “TVA Group plans extensive efforts to increase their reach and grow their audiences on all content delivery platforms.”
