TORONTO – Thanks to a partnership agreement which dates back to the beginnings of CanWest Global’s only analog specialty service, Prime TV, Rogers Communications wants to acquire one-third ownership of the channel.
In a nutshell, Rogers provided some start-up financing and covered some operating costs for the channel leading to and after its launch in 1997. In return, RCI received a subordinated debenture from CanWest, convertible into ownership of the channel, at RCI’s option.
The company has exercised its option and plans to take 33.3% ownership of CanWest’s channel.
CanWest has applied for CRTC approval for the ownership change. Until now, it has owned 100% of the channel. The CRTC application makes it clear CanWest would continue to run Prime as it already does.
Rogers will be taking a third of a channel which is performing rather well – as are most of the analog specialties. Prime’s 2003 revenue (the latest year publicly available) was $26.3 million. It’s pre-tax profit: $9.5 million. Prime has close to five million subscribers.
The Commission will consider the application at a hearing on December 12th.
– Greg O’Brien
