TORONTO – While reiterating how disappointed he was in last fall’s CRTC decision to deny the purchase of his company by Bell Canada, Astral Media CEO Ian Greenberg told shareholders today at Astral’s annual general meeting that the two companies have listened and learned and are confident the new application filed with the Commission will gain approval this time.
The new application was submitted on November 19, 2012 and is expected to be made public by the CRTC very soon. It was 71 days between the submission of the first application from Bell to buy Astral and when it was made public. As of February 28th, it has been 101 days since application number two was filed (with the Christmas season right in the middle of that).
Greenberg (pictured at the podium and beneath one of the understatements of the year) noted yesterday what Bell and Astral learned from the decision and re-pitched some of the reasons why the transaction should proceed. Below is the excerpted portion of Greenberg’s speech to shareholders that spoke to the Bell acquisition plan. We’ll leave the reading between the lines to you:
“In the days and weeks following the decision, we undertook an in-depth analysis of the CRTC decision to better comprehend its key factors. We’re now confident we have a solid understanding of the CRTC’s concerns and have developed a revised application that directly addresses these issues.
“The CRTC’s decision clarified several issues relating to the acquisition of regulated media assets with respect to the calculation of viewership thresholds. The position of the CRTC has been made clear on this matter, specifically viewership of media properties jointly owned with other companies must be fully included in viewership calculation while viewership of U.S. channels available in Canada must be excluded.
“Astral welcomes this clarity and direction.
“As a key player in the broadcasting system and a company that prides itself on respecting the established rules, Astral has long advocated for increased predictability and consistency from the regulator. The rules are now clear and we move forward with renewed enthusiasm.
“Together with Bell’s team, we submitted a revised application to the CRTC, which should be made public in the coming weeks. This new proposal sets out the steps we will take to address the Commission’s concerns and comply with the regulations.
“Our revised application also includes a large tangible benefits package to support the creation of exceptional Canadian radio and television content. This includes investing in and promotion home-grown talent which will directly benefit Canadian consumers and content creators.
“The Canadian broadcasting system is undergoing rapid change, driven mainly by the emergence of foreign, internet-based OTT broadcasters. These new services do very little to support our culture and our economy as they do not create Canadian content, do not hire Canadians, do not pay taxes in this country and do not support our creators, artists and local talent.
“Competing in this landscape requires constant investment and innovation to develop and showcase the best content and to ensure Canadian TV viewers and radio listeners are informed and entertained with programming that reflects their interests, values and culture – content that they as Canadians can identify with.
“Astral and Bell are committed to making sure that the consumer always comes first. Together, we will have the scale necessary to invest, create and promote more Canadian programming and more local coverage in both French and English. With Bell, Astral’s consumer brands will become stronger, promising new opportunities that will directly benefit Canadian artists and our cultural community.
“As important as our talented employees from across the country are, they will also benefit from a company that is stable, secure, innovative and looking to the future. This stability includes Bell’s strong commitment to maintaining the port folio of French language radio and television properties that will be headquartered in Montreal under the direction of Astral’s existing leadership team. The commitment recognizes the talent of Astral employees and promises a bright future for our employees as part of the Bell family.
“This is only one reason why Astral is joining Bell, but there are many others. First, more choice for consumers, two, more competition in Quebec, throughout Canada and against foreign broadcasters. Three, more investment in Canadian radio and television content, channels and talent. More production and promotion of hit Canadian content, more innovation in delivering content any time, anywhere and on any device. And finally, more funding for Canadian arts and culture."
– Greg O’Brien
