Broadcasting Notice of Consultation CRTC 2012-Xx

Broadcasting Notice of Consultation CRTC 2012-Xx

Broadcasting Notice of Consultation CRTC 2012-370 PDF version Ottawa, 10 July 2012 Notice of hearing 10 September 2012 Montréal, Quebec Deadline for submission of interventions/comments/answers: 9 August 2012 [Submit an intervention/comment/answer or view related documents] The Commission will hold a hearing commencing on 10 September 2012 at 9:00 a.m. at the Palais de congrès de Montréal, 1001 place Jean-Paul-Riopelle, Montréal, Quebec, to consider the following applications: Applicant/Licensee and Locality 1. BCE Inc., on behalf of Astral Media inc. Various locations Application 2012-0516-2 2. Bell Media Inc. and 7550413 Canada Inc., partners in a general partnership carrying on business as Bell Media Canada Radio Partnership Montréal, Quebec Application 2012-0573-2 3. BCE Inc., on behalf of certain of its licensed broadcasting subsidiaries Various locations Applications 2012-0701-9 and 2012-0736-6 4. BCE Inc., on behalf of Astral Media inc. and certain of its licensed broadcasting subsidiaries Various locations Application 2012-0735-8 5. 7954689 Canada Inc. Montréal, Quebec Application 2012-0748-1 6. Fight Media Inc. Across Canada Application 2012-0420-6 2 7. L S Movie Channel Limited Across Canada Application 2012-0426-3 8. HGTV Canada Inc. Across Canada Application 2012-0482-5 9. Paul Girouard, on behalf of a corporation to be incorporated Across Canada Application 2012-0523-7 10. Paul Girouard, on behalf of a corporation to be incorporated Across Canada Application 2012-0524-5 11. Paul Girouard, on behalf of a corporation to be incorporated Across Canada Application 2012-0525-3 12. Paul Girouard, on behalf of a corporation to be incorporated Across Canada Application 2012-0526-1 13. Paul Girouard, on behalf of a corporation to be incorporated Across Canada Application 2012-0527-9 14. 8045313 Canada Inc. St. Catharines and Niagara Region, Ontario Application 2012-0369-5 15. Canadian Broadcasting Corporation Yellowknife, Fort Providence, Fort Resolution, Fort Simpson, Fort Smith, Hay River, Rae-Edzo and Wrigley, Northwest Territories and Fort Chipewyan, Alberta Application 2012-0596-4 16. Novus Entertainment Inc. Metro Vancouver, British Columbia Application 2012-0528-7 17. Vista Radio Ltd. Niagara Falls, Elliot Lake, St. Catharines, Iroquois Falls, Timmins, Kapuskasing. Bancroft, Stratford, Fort Erie, Parry Sound, Huntsville, Bracebridge, Sturgeon Falls, Cochrane, Hearst, Haldimand, North Bay, Haliburton, Espanola, Bolton, Caledon, Barry’s Bay, Kemptville and Prescott, Ontario Application 2012-0497-4 3 18. Hollywood Suite Inc. on behalf of a corporation to be incorporated Across Canada Application 2012-0668-1 19. RNC MÉDIA Inc. Montréal, Quebec Application 2011-1650-0 Preamble Items 1 to 4 The Commission received an application by BCE Inc. (BCE), on behalf of Astral Media inc. (Astral) and its licensed broadcasting subsidiaries, for authority to change the effective control of Astral’s broadcasting undertakings so that it is exercised by BCE (the proposed transaction). Subject to Commission approval, the closing of the proposed transaction would be preceded by multi-step corporate reorganizations within both BCE and Astral, for tax planning purposes and in order to facilitate the closing and the possible divestiture of certain assets. To that end, the Commission has received applications by BCE to effect a multi-step corporate reorganization involving the transfer of assets of certain broadcasting undertakings to new entities to be established and controlled by BCE. In addition the Commission received an application by BCE on behalf of Astral to effect a corporate reorganization within Astral involving the transfer of the assets of certain of its broadcasting undertakings to new corporations to be incorporated and wholly owned by the current licensees. Finally, the Commission has received an application by Bell Media Inc. and 7550413 Canada Inc., partners in a general partnership carrying on business as Bell Media Canada Radio Partnership, for authorization to convert the English-language AM radio station CKGM Montréal to a French-language AM radio station. Items 3 to 19 The Commission intends to consider, subject to interventions, items 3 to 19 during the non appearing phase of the hearing. In accordance with section 35(1)(a) of the Canadian Radio-Television and Telecommunications Commission Rules of Practice and Procedure, SOR/2010-277, the applicants and licensees are required to post the present notice of consultation or an electronic link to it on a page of their respective websites that is accessible from the home page by no later than 5 calendar days from the date of the present notice. It must remain there until the intervention deadline for this proceeding. 4 1. BCE Inc., on behalf of Astral Media inc. Various locations Application 2012-0516-2 Application by BCE Inc., (BCE) on behalf of Astral Media inc. (Astral) for authority to change the effective control of Astral, and its licensed broadcasting subsidiaries, so that it is exercised by BCE. The transaction will be carried out by the acquisition of all outstanding shares of Astral by BCE and BCE Subco, a wholly owned subsidiary to be incorporated. Pursuant to the terms of the Arrangement Agreement, Astral’s shareholders may elect to transfer their Astral shares to a newly incorporated corporation (Holdco) in exchange for shares of Holdco, whose shares will be sold to BCE for the same consideration as would otherwise be received on the direct sale of Astral shares (the Holdco Alternative). Shareholders have until closing of the transaction to choose the Holdco Alternative which, in certain circumstances, may require the Commission’s prior approval. Immediately following the closing of the transaction, BCE will transfer all of its Astral shares and all shares in BCE Subco to Bell Canada, who will in turn transfer them to Bell Media Inc. (Bell Media). Finally, Bell Media will amalgamate with BCE Subco, with Astral and with Astral’s wholly owned subsidiaries: Astral Broadcasting Group Inc. and its subsidiaries MusiquePlus Inc. and the Family Channel Inc.; and Astral Media Radio inc. and its subsidiaries Astral Media Radio (Toronto) Inc. and Astral Media Radio Atlantic Inc. to continue as Bell Media. In its application, BCE indicated that 4382072 Canada Inc., partner in Astral Media Radio G.P. (Astral GP), may also be amalgamated into Bell Media. In the event that this occurs, Astral GP would be dissolved which would require an application by Bell Media application seeking authority to acquire the assets of the undertakings currently under Astral GP. Bell Media is controlled by Bell Canada. Bell Canada is a wholly owned subsidiary of BCE, a public corporation controlled by its board of directors. The transfer of Astral’s shares and change of its effective control will occur pursuant to the terms of the Arrangement Agreement dated 16 March 2012. Considering the size and scope of the proposed transaction, the Commission may discuss, among other things, the following: Ownership In the context of the proposed consolidation involving BCE, a significant Canadian communications company with subsidiaries in broadcasting and in telecommunications, and Astral, a leading Canadian broadcasting company, the Commission may wish to discuss the potential impact on the market, and examine various ownership related issues. 5 Diversity of Voices In Diversity of voices – Regulatory policy, Broadcasting Public Notice CRTC 2008-4, 15 January 2008, the Commission established that, as a general rule, it would not approve applications for a change in effective control that would result in the control, by one person, of a dominant position in the delivery of television services to Canadians that would impact on the diversity of programming available to television audiences. The Commission also stated that transactions resulting in one person controlling less than 35% of the total television audience share would be processed expeditiously, whereas it would carefully examine transactions where one person controlled between 35% and 45% of the total television audience share. BCE submitted that its application should present no concern to the Commission since the combined television audience share of Bell Media and Astral (including non-Canadian services) in both the French- and English-language markets would fall below the 35% threshold used by the Commission to process transactions expeditiously. Common Ownership Policy In the context of the proposed transaction, the Commission may wish to discuss the compliance of the proposed transaction with the Common Ownership Policy particularly in the markets of Vancouver, Calgary, Winnipeg, Toronto, Ottawa-Gatineau and Montréal. BCE submitted that it will divest a total of ten stations in Vancouver, Calgary, Winnipeg, Toronto, and Ottawa-Gatineau, and convert CKGM Montréal into a French-language radio service in order to comply with the common ownership policy. Value of the transaction The Commission may wish to discuss the value of the transaction, the valuation methodology applied to the assets and how the value has been allocated between the various broadcasting undertakings. BCE submitted that the total value of the transaction is $3.38 billion including an equity value of $3 billion and $380 million in net debt. BCE also stated that the total value of the broadcasting assets subject to tangible benefits is $2.406 billion. Proposed benefits package Under the Commission’s tangible benefits policy, applicants are required to propose tangible

View Full Text

Details

  • File Type
    pdf
  • Upload Time
    -
  • Content Languages
    English
  • Upload User
    Anonymous/Not logged-in
  • File Pages
    30 Page
  • File Size
    -

Download

Channel Download Status
Express Download Enable

Copyright

We respect the copyrights and intellectual property rights of all users. All uploaded documents are either original works of the uploader or authorized works of the rightful owners.

  • Not to be reproduced or distributed without explicit permission.
  • Not used for commercial purposes outside of approved use cases.
  • Not used to infringe on the rights of the original creators.
  • If you believe any content infringes your copyright, please contact us immediately.

Support

For help with questions, suggestions, or problems, please contact us