CRTC Clears CHUM Acquisition

OTTAWA, June 11: The Canadian Radio-television and
Telecommunications Commission (CRTC) has cleared CTVglobemedia’s acquisition of
CHUM Limited, on the condition that the company dispose of the five Citytv
stations in Toronto, Winnipeg, Edmonton, Calgary and Vancouver.

The Canadian regulator blocked the Citytv transfer to CTVgm
on the grounds that a licensee may not operate more than one conventional
television station in one language in a given market. “The purpose of this
policy is to maintain diversity of voices within the Canadian broadcasting
system,” said Konrad von Finckenstein, the chairman of the CRTC. “Some
exceptions to the policy were granted in the past for failing stations in
secondary markets. CTVgm asked for the exception using arguments based upon competitive
equality and the impact of new media. However, the Commission was not convinced
by CTVgm’s arguments.”

The A-Channel group of television stations, however, have
been cleared as part of the sale agreement. CTVgm will be now be able to
acquire seven television stations, 34 radio stations and, in whole or in part,
20 specialty television services.