Rogers, CTVglobemedia in Deal for Specialty Channels

TORONTO, April 9: CTVglobemedia has reached a deal to offload several channels from CHUM—which it is in the process of acquiring—including SexTV and the A-Channel local stations, to Rogers Media for C$137.5 million ($119.4 million) in cash.

The deal covers the A-Channel group of six over-the-air conventional broadcast television stations; CKX-Television, an over-the-air conventional CBC affiliate based in Brandon, Manitoba, broadcasting CBC, local and syndicated programming to Western Manitoba and Eastern Saskatchewan; ACCESS Alberta, the designated provincial educational television broadcaster for Alberta; CLT (Canadian Learning Television), Canada’s only national educational television specialty, available via cable, satellite and telco distributors; and SexTV: The Channel, an English-language digital specialty service.

The assets to be acquired by Rogers are currently under the control of John D.McKellar, the trustee under a Voting Trust Agreement in respect to CTVglobemedia’s previously announced plan to acquire CHUM.

This transaction is subject to approval by the Canadian Radio-television and Telecommunications Commission (CRTC) and Competition Bureau. The agreement is also subject to CRTC approval of CTVglobemedia’s acquisition of CHUM, which included a commitment to divest these assets.

"Rogers has built its successful television business by serving community-focused and niche audiences," said Rael Merson, the president of Rogers Broadcasting. "The acquisition of these 10 television services will significantly expand our television operations and solidify our position as an important participant in the Canadian television industry. This also complements our strong position in Canadian radio, sports broadcasting and publishing."

Ivan Fecan, CTVglobemedia’s president and CEO and CEO of CTV Inc., added: "Rogers is a highly respected Canadian media company. They are great builders and as such, are an excellent fit as the purchaser of these assets. I know they will continue to grow the specialty channels and apply their significant expertise, financial resources and commitment to conventional TV to ensure the A-Channel local stations not only survive, but thrive. This acquisition will both provide for diversity of local voices and give Rogers the scale to emerge as the fourth national English-language over the air player together with CTV, CanWest and the CBC."