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PUBLIC HEARING
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Agenda
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Following the
conclusion of the 7 September 2004 public hearing
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APPEARING ITEM
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1.
CHUM Limited and Craig Media Inc.
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A COMPLETE LIST OF ALL
INTERVENTIONS RECEIVED CONCERNING THE APPLICATION SCHEDULED FOR THIS
PUBLIC HEARING IS AVAILABLE ON THE PUBLIC EXAMINATION FILE
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1. |
Across Canada
Application No. 2004-0514-3 |
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Broadcasting Notice of
Public Hearing CRTC 20045, item 3 |
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Application by CHUM
Limited (CHUM), on behalf of Craig Media Inc. (Craig), seeking
authority to transfer the effective control of Craig to CHUM. |
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Craig |
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Craig is a privately held
broadcast company with a number of undertakings in Alberta, Manitoba and
Ontario. It is the licensee of CKAL-TV Calgary, CKAL-TV-1 Lethbridge,
CKEM-TV Edmonton, CKEM-TV-1 Red Deer, CHMI-TV Portage LaPrairie/Winnipeg,
CKX-TV Brandon, CKX-TV-1 Foxwarren, CKX-TV-2 Melita, CKX-TV-3 McCreary,
CKXT-TV Toronto (known as Toronto One) and CKXT-DT Toronto. Through its
subsidiaries, Craig is also the licensee of digital specialty television
services, MTV Canada (Category 1), MTV2 (Category 2), TV Land (Category
2) and Stampede (Category 2), a service not yet in operation. |
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CHUM |
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CHUM is the owner of
conventional television stations, radio stations and analogue specialty
services across Canada. In addition, CHUM owns a number of digital
specialty television services. |
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Should the proposed
transaction be approved, CHUM would become the third largest
English-language national multi-station group in Canada, after CTV
Television Inc. and Global Communications Limited. |
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Toronto One |
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The licence for Toronto One
was granted by the Commission in Broadcasting Decision CRTC 2002-81, 8
April 2002. The station launched in September 2003. This transaction
raises an issue of the integrity of the licensing process as the
undertaking is being sold within the first year of the licence term. |
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In order to comply with the
Commission’s common ownership policy, CHUM commits to divest of Toronto
One, following the closing of the transaction. |
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Value of transaction |
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Pursuant to the Share
Purchase Agreement, dated 10 April 2004, CHUM proposes to acquire all of
the issued and outstanding shares of Craig for a total cash
consideration of $265 million. |
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Tangible and Intangible
Benefits |
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CHUM proposes a tangible
benefit package of $20 million (10.41% of the value of the transaction
excluding Toronto One and the Category 2 services). The benefits are
described as follows: |
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- Priority Programming:
$10.5 million;
- Local Programming: $6.815 million, and
- Social Benefits and Talent Development: $2.685 million. |
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CHUM proposes no tangible
benefits for the Category 2 specialty services on the grounds that these
services do not have genre protection and are not guaranteed
distribution. |
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FOR CHUM LIMITED
Jay Switzer
Peter Palframan
Peter Miller
Marcia Martin
Sarah Crawford
Richard Gray
Prem Gill
David Kirkwood
Diane Boehme |
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FOR CRAIG MEDIA INC.
Jennifer Strain
Drew Craig |
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APPEARING INTERVENERS
1. Mr. Norman Spector (int. 108)
2. Alberta Motion Picture Industries Association, Alan
Brooks (int. 376)
3. Global Television Network, Charlotte Bell, Jack Tomik,
Doug Hoover, Kathy
Gardner (int. 378)
4. Canadian Diversity Producers Association, Amos Adetyi,
Paul DeSilva (int. 386)
5. Manitoba Motion Picture Industry Association, C.V. (Caryl)
Brandt, Lisa Meeches
(int. 389)
6. Documentary Organisation of Canada, Bart Simpson (int.
393)
7. Directors Guild of Canada, Pamela Brand (int. 397)
8. Canadian Film and Television Production Association, Guy
Mayson (int. 425)
9. Joe Clark (int. 428)
10. Alliance of Canadian Cinema Television and Radio Artists, Ken
Thompson (int. 430)
11. Meeches Video Production Inc., Lisa Meeches (int. 442)
12. Communications, Energy and Paperworkers Union of Canada, Peter
Murdoch
(int. 476) |
