Astral Gets Approval for SHORE-FM Acquisition

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Astral Gets Approval for SHORE-FM Acquisition

Postby jon » Mon Dec 19, 2011 2:29 pm

Astral Radio announces the acquisition of Shore FM in Vancouver
Astral Press Release
December 19, 2011

The CRTC approves a transaction which enables Astral
to strengthen its multiplatform presence in Vancouver

Montréal, December 19, 2011 — Astral Media Radio Inc. ("Astral Radio"), a subsidiary of Astral Media Inc., (TSX: ACM.A ACM.B) today announced that it has received authorization from the CRTC to acquire Shore Media Group Inc., the radio licence holder for CHHR FM 104.3 (Shore FM), broadcasting in Vancouver, British Columbia. The acquisition is set to be completed in early 2012 at a price of approximately $13.4 million.

"We are very proud to have Shore FM join the Astral family and reinforce our multiplatform presence in Vancouver and British Columbia, taking the number of radio stations that we operate in Canada to 84," said Jacques Parisien, President of Astral Radio. "The addition of a third radio station in the Vancouver market will enable us to become even more competitive and to continue to improve our offering to listeners and advertisers."

With the acquisition of Shore FM, Astral will add a new radio station to its Vancouver media portfolio, comprising Virgin Radio 95.3 and AM 650, a nine-face digital outdoor advertising network, as well as a number of specialty and pay-television services. This combination of targeted media properties and platforms provides Vancouver advertisers with a complete slate of possibilities to reach consumers where they live, work, shop and play.

Through this acquisition, Astral has committed to continue Shore FM's $7 million contribution over 7 years towards Canadian Content Development (CCD) investments, which includes funding of the Song Search program aimed at introducing new Canadian talent to Vancouver listeners. Astral is also committing an additional $800,000 over 7 years in tangible benefits to various community and industry organizations, including the Radio Starmaker Fund, Musicaction and the Community Radio Fund of Canada.

This press release contains certain forward-looking statements concerning the future performance of the Company. These forward-looking statements are based on current expectations. We caution that all forward-looking information is inherently uncertain and actual results may differ materially from the assumptions, estimates or expectations reflected or contained in the forward-looking information, and that actual future performance will be affected by a number of factors, including technological change, economic conditions, regulatory change, competitive factors and changes in accounting rules or standards, many of which are beyond the Company's control. We disclaim any intention or obligation to update or revise any forward-looking statements.

Founded in 1961, Astral one of Canada's largest media companies. It operates several media properties—pay and specialty television, radio, out-of-home advertising, and digital—among the most popular in the country. Astral plays a central role in community life across the country by offering diverse, rich, and vibrant programming that meets the tastes and needs of consumers and advertisers alike. To learn more about Astral, go to astral.com.
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Re: Astral Gets Approval for SHORE-FM Acquisition

Postby Dan Sys » Mon Dec 19, 2011 2:47 pm

Huh? Absolutely nothing on the CRTC site about this today. It was only back on September 28th that the CRTC rejected this application. I never saw a thing that indicated Astral had reapplied. Something seems a bit fishy here.
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Re: Astral Gets Approval for SHORE-FM Acquisition

Postby Aaron » Mon Dec 19, 2011 2:48 pm

Does it ever.
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Re: Astral Gets Approval for SHORE-FM Acquisition

Postby hagopian » Mon Dec 19, 2011 2:58 pm

Told ya.
The Shore was always a stick that would be sold at first op.

So now the listener will lose a good station to have the windbags at Astral spend 23 hours a day reminding everyone how great they are.

SUCK. That would be a more appropriate word.

The whole CRTC structure is a joke and so is media ownership in this tin pot, Banana Republic.
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Re: Astral Gets Approval for SHORE-FM Acquisition

Postby erratics » Mon Dec 19, 2011 7:58 pm

I'm not sure how much money the original shareholder group put into getting this station going 2 or 3 years ago, but the shareholders of this venture will probably have a very nice retirement kitty with this deal with Astral. I think the original owners of the Beat also did extremely well when they the sold to Bell/Chum a few years back.

It's quite an "about turn" with the CRTC since last September. There's probably some kind of story that led to this.
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Re: Astral Gets Approval for SHORE-FM Acquisition

Postby Dan Sys » Mon Dec 19, 2011 8:40 pm

Yeah, hopefully we'll be able to figure out "the story" tomorrow morning with an anticipated release on the CRTC site. This whole thing is very disturbing as it appears the CRTC deliberately held off making it public knowledge right from the beginning last summer. The original application was never released on the CRTC site. I kind of gave them the benefit of the doubt thinking that it might have been an oversight, but obviously Astral reapplied or appealed that original decision. That also was never made public.....it should have!
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Re: Astral Gets Approval for SHORE-FM Acquisition

Postby freqfreak2 » Mon Dec 19, 2011 10:27 pm

C.R.T.C. = Can't Really Trust a Commission
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Re: Astral Gets Approval for SHORE-FM Acquisition

Postby slowhand » Mon Dec 19, 2011 10:36 pm

freqfreak2 wrote:C.R.T.C. = Can't Really Trust a Commission

I can't make the letters work out nicely (maybe it does in French) CRTC = Juneau's Folly is how I've always thought of it. Remember he was the one who wanted 100% CanCon. All Canadian Music All the Time. :bag:
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Re: Astral Gets Approval for SHORE-FM Acquisition

Postby freqfreak2 » Mon Dec 19, 2011 10:42 pm

I know how it feels. My French ain't so good either. What means "force majeure?"

In Revised criteria for the application of the licence trafficking policy, Broadcasting Information Bulletin CRTC 2010-220, 19 April 2010 (the licence trafficking policy), the Commission stated that during the first two years following the launch of a service, any transaction involving the licence will normally be denied, except where the applicant can demonstrate the necessity of the transaction as a result of a force majeure event.


ref - http://www.crtc.gc.ca/eng/archive/2011/lb110926.htm
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Re: Astral Gets Approval for SHORE-FM Acquisition

Postby Anotherwpgguy » Mon Dec 19, 2011 10:58 pm

The interesting thing about "policy" is that it doesn't carry the force of law by regulation made through enabled documents, or Court Order ... it is plain and simple .... BS.

They just decide over coffee one morning that is how they will conduct themselves, and from that point forward, unless challenged in court by someone who is miffed, is the way they do business.

AWG
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Re: Astral Gets Approval for SHORE-FM Acquisition

Postby Mike Cleaver » Mon Dec 19, 2011 11:30 pm

13.9 million is the figure I've heard.
Not bad for running a money losing operation for two years.
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Re: Astral Gets Approval for SHORE-FM Acquisition

Postby Paul P » Mon Dec 19, 2011 11:48 pm

Mike Cleaver wrote:13.9 million is the figure I've heard.


Montréal, December 19, 2011 — Astral Media Radio Inc. ("Astral Radio"), a subsidiary of Astral Media Inc., (TSX: ACM.A ACM.B) today announced that it has received authorization from the CRTC to acquire Shore Media Group Inc., the radio licence holder for CHHR FM 104.3 (Shore FM), broadcasting in Vancouver, British Columbia. The acquisition is set to be completed in early 2012 at a price of approximately $13.4 million.
Being nice is my resolve - in 2012
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Re: Astral Gets Approval for SHORE-FM Acquisition

Postby jon » Tue Dec 20, 2011 9:22 am

Oddly, this morning's CRTC releases just came out, but still no mention of this decision.
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Re: Astral Gets Approval for SHORE-FM Acquisition

Postby Dan Sys » Tue Dec 20, 2011 3:23 pm

I did however find this while digging around on the CRTC site this morning:
http://www.crtc.gc.ca/eng/archive/2010/2010-961.htm

I don't really understand what this is all about in great detail, but section 4 (part a) "information that is a trade secret" kind of stood out. Does this mean the CRTC, by request of an applicant, will hush things up so the competetion doesn't get wind of it? If so, that is so wrong. As far as I know the airwaves in Canada are still "public".
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Re: Astral Gets Approval for SHORE-FM Acquisition

Postby Aaron » Tue Dec 20, 2011 3:27 pm

More likely, Shore was on the verge of bankruptcy and that leaking out could have caused a lot of trouble.

Regardless, stations that go bankrupt in their first term should probably go dark rather than be sold in secret.
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