Canwest Inks Deal to Sell Two Stations

WINNIPEG: Canwest Global Communications Corp has reached an agreement to sell two of its local stations—CHCH-TV in Hamilton and CJNT-TV in Montreal—to independent television broadcaster Channel Zero, which operates the Movieola and Silver Screen Classics specialty networks.

In February, Canwest announced it had retained RBC Capital Markets to assist in the sale of five of its TV stations so that it could focus on its flagship Global brand as well as its specialty networks. CHCH-TV in Hamilton and CJNT-TV in Montreal, the stations included in the Channel Zero deal, as well as CHCA-TV in Red Deer, CHBC-TV in Kelowna and CHEK-TV in Victoria, carry local programming as well as content from E! The purchase price for CHCH and CJNT was not disclosed. 

“We believe that this sale, once complete, will represent the best opportunity for these stations, the communities they serve and the employees who work there,” Peter Viner, Canwest Broadcasting’s president, said. “Despite considering a number of strategic alternatives, we concluded that without new ownership, these stations would have to be closed.”

The sale is subject to approval by the Canadian Radio-television and Telecommunications Commission. Channel Zero will file applications with the CRTC requesting approval of the transfer of control of the station’s licences under terms and conditions similar to those contained in Canwest’s current licences, including commitments to air 13.5 hours of local ethnic programming per week at CJNT and 36.5 hours of local programming per week at CHCH. Channel Zero has also agreed to offer employment to all current employees of the stations.

CHCA-TV in Red Deer, CHBC-TV in Kelowna and CHEK-TV in Victoria, meanwhile, remain on the auction block.