Astral-Bell Merger Moving Forward

OTTAWA/MONTREAL: The Canadian Radio-television and Telecommunications Commission (CRTC) has approved Bell’s revised bid to take over Astral Media, paving the way for the C$3.2 billion acquisition to close as early as July 5.

The CRTC approved the sale on conditions that Bell sells off the ten radio stations it acquired in the deal as well as 11 specialty TV channels, including TELETOON, Family Channel, Cartoon Network Canada and Disney XD. Bell has already received a tentative offer from Corus Entertainment to buy several of these channels, among them TELETOON and Cartoon Network.

Bell will receive eight Astral pay- and specialty-TV services: the French-language Super Écran, Cinépop, Canal Vie, Canal D, VRAK TV and Ztélé, and the English-language services The Movie Network, which includes HBO Canada, and TMN Encore. The acquisition includes Astral’s two rural over-the-air TV stations in British Columbia, CJDC in Dawson Creek and CFTK in Terrace, and Astral’s interest in the Viewer’s Choice Canada pay-per-view service. Astral also operates one of Canada’s largest out-of-home advertising companies, and Bell Media will become Canada’s largest radio operator with the addition of 77 Astral radio stations, including brands like NRJ, Virgin Radio, Rouge fm, EZ Rock and boom.

“Astral’s application put forward a different approach and responded to many of our concerns,” said Jean-Pierre Blais, the chairman of the CRTC. “Yet there remained a significant risk that BCE could exert its market power to limit choice and competition. To ensure the public interest is served, we are requiring BCE to invest in new Canadian programming and sell more than a dozen services, and we are putting in place a number of competitive safeguards. This will maintain a healthy and competitive broadcasting system that offers more programming choices to Canadian consumers and citizens and more opportunities for Canadian creators.”

"Together, Astral and Bell Media will deliver more for Canadians, investing in great new programming and innovative new ways to access it, and ramping up competition in the Canadian broadcasting sector. It all means unprecedented new choice for Canadian viewers and listeners," said George Cope, the president and CEO of Bell and BCE. "As two long-established Montréal companies, Astral and Bell especially look forward to taking competition and choice in Québec media to a whole new level."

The combined company will be led by a team of senior Astral and Bell Media executives, and Montreal remains the center for French-language programming. Bell Media will also open new regional development offices in Halifax, Winnipeg and Vancouver. Upon closing of the transaction, Astral president and CEO Ian Greenberg will join the BCE board of directors.

"The Astral team has built a uniquely successful Canadian media business in the last 50 years, and all of us are excited by the new possibilities ahead as we join with Bell Media," said Greenberg. "With our combined resources, we look forward to bringing truly great new French and English language programming and viewing options to consumers across the country."

"Bell Media plans to be a world leader in content development and broadcasting, dedicated to ensuring Canadians have access to the best programming in all the ways they want to watch and listen. Joining with Astral accelerates Bell Media’s position as a broadcast innovator, an enabler of great Canadian content, and a passionate supporter of Canada’s creative community," commented Kevin Crull, the president of Bell Media. "We’re also delighted that we can continue to serve the very passionate sports fans of Montreal with TSN Sports Radio 690!"