by Mike Cleaver » Wed Jul 12, 2006 12:41 pm
Here's the Bell Globemedia announcement:
Moments ago, we and CHUM announced that the Board of Directors and the controlling shareholders of CHUM Limited have agreed to support an offer to be acquired by Bell Globemedia.
This is a wonderful opportunity for both companies.
We were honoured to be approached by the Waters family to make an offer for their shares when they decided to sell controlling interest. I believe they recognized the great respect we have for CHUM?s brands, their history and the people who built them. We believe that Bell Globemedia is the most logical buyer and best possible home for CHUM, assuming, of course, regulatory approvals.
For Bell Globemedia, this deal means the addition of the legendary CHUM radio stations, complementary specialty channels and Citytv stations. CHUM operates two over-the-air national networks, Citytv and A-Channel, in large parts of the country while Bell Globemedia has the CTV network in every market. Therefore, we intend to divest the A-Channel stations and Access Alberta stations. These are good stations and we will work hard to find them new owners, who will also need regulatory approval. The combination of CTV and Citytv will give Bell Globemedia the same number of over-the-air networks as our principal competitor in most markets.
I have always believed that the value of media brands is in their uniqueness and diversity. So, naturally, we intend to maintain and strengthen the flavour and energy of CHUM?s brands. We will also keep the news divisions completely separate to ensure diverse voices and the journalistic competition that serves the public interest. Both news organizations will continue to do what they do best.
With the purchase of CHUM?s shares, the future holds exciting possibilities. But we still have several steps to complete this deal. Although the Waters family has agreed to sell their shares and the Board of CHUM is recommending that other shareholders do the same, we must finalize our offer to all shareholders. The offer is conditional on approval by the Competition Bureau. The CRTC must review and hopefully grant regulatory approval. During this period, the common shares that Bell Globemedia acquires will be held in trust.
Once completed, the combined companies of Bell Globemedia and CHUM will, I believe, result in a stronger national champion for quality private broadcasting.
Ivan Fecan
President and CEO, Bell Globemedia
CEO, CTV Inc.
Mike Cleaver Broadcast Services
Engineering, News, Voice work and Consulting
Vancouver, BC, Canada
54 years experience at some of Canada's Premier Broadcasting Stations