On October 18, 2012, the CRTC announced that it had rejected BCE's proposal to acquire Astral Media. The commission cited that their combined market power could "threaten the availability of diverse programming for Canadians and endanger the ability of distribution undertakings to deliver programming at affordable rates and on reasonable terms on multiple platforms", and also stated that allowing the merger would have required the implementation of "extensive and intrusive safeguards" across the entire broadcasting industry. The CRTC also felt that Bell did not adequately demonstrate how having most of Canada's French-language media owned by two vertically integrated companies would improve competition, and how being bigger would allow it to compete against foreign services. [14]
Second attempt
Following the rejection of the deal by the CRTC, Bell Canada CEO George A. Cope asserted that calling the merger dead was "premature", citing that the formal merger agreement between Bell and Astral did not expire until December 16, 2012, and either company could extend it to January 15, 2013. Bell attempted to ask the Cabinet to overturn the CRTC's decision, but was told that they did not have the ability to do so. Bell also reportedly considered going to the Federal Court of Appeal, or restructuring the deal to selectively sell Astral assets to competing companies. Rogers Media expressed interest in acquiring some of Astral's channels if such a sale were to occur. [15] [16] On November 16, 2012, Astral confirmed that it was in talks with Bell to negotiate a new offer, which would involve the sale of the majority of its English-language television channels to third parties. [17]
On March 4, 2013, the Competition Bureau approved a new proposal by Bell to acquire Astral Media, which would involve the divestiture of certain television channels and radio stations owned by the combined company, and was subject to restrictions preventing Bell from imposing restrictive bundling requirements on any provider seeking to carry The Movie Network or Super Écran. [18] The CRTC made the proposed takeover proposal public on March 6, 2013. [19] Unlike the previous deal, which would have given Bell a 42% share of the English-language television market, the new deal gave Bell a total market share of 35.7%, and increased its French-language market share to 22% (in comparison to 8% before). [20] [21] On March 18, 2013, the Competition Bureau cleared a proposed deal to sell Astral's stakes in several channels to Corus Entertainment in preparation for regulatory approval. [21]
In a speech to the Academy of Canadian Cinema and Television prior to the hearings, Bell Media's president Kevin Crull detailed plans to invest in French-language productions and maintain a distinct operation in Montreal devoted to its French-language outlets. Crull also praised the role of Québecor Média (despite the company being opposed to the merger) in using its own vertical integration strategy to help promote Francophone talent, and revealed his intention to try and emulate its "star system" in English Canada. [22]
Hearings and approval
CRTC hearings on the new proposals began in May 2013. Asserting that it would have to sell or shut down the station without one, Bell organized a petition proposing an exception to the ownership cap that would allow it to maintain ownership of CKGM, under the condition that Bell maintain the TSN Radio format on the station and provide $245,000 in funding for local amateur sports and scholarships in sports journalism over a seven-year period. Commissioner Suzanne Lamarre commented that Bell could have sold another station instead, given most of the comments on Bell's petition only supported CKGM maintaining a sports radio format, and not Bell's purchase of Astral. In response, Bell's CEO George A. Cope commented that the company did not want to sell off profitable radio stations, and Astral CEO Jacques Parisien remarked that breaking up its Montreal cluster would affect their operation. [23]
Rogers called on the CRTC to require that Bell divest The Movie Network, claiming that Bell would make it harder and more expensive for competing service providers to access The Movie Network's content (especially on its own Anyplace TV and on-demand services) if Bell were to own the service. Bell disputed Rogers' claims, stating that the company already had a long-term deal to distribute The Movie Network on its cablesystems, and noted that Rogers had expressed interest in purchasing the service if it were to be divested. Bell indicated that it would not go ahead with the deal if it were forced by the CRTC to sell additional media outlets. [25] Rogers also showed interest in making a "reasonable offer" to purchase CKGM as a complement to its recently acquired TV station CJNT-DT. Under Rogers ownership, CKGM would have kept its sports talk format, but as a Sportsnet Radio station instead of TSN Radio. [26]
On June 27, 2013, the CRTC approved Bell's acquisition of Astral Media, which closed on July 5, 2013. The deal was subject to conditions, including the requirement for Bell to provide fair treatment to its competitors, to not impose "restrictive bundling practices" on Astral's premium movie channels, invest $246.9 million over the next seven years on Canadian-produced programming, and to maintain the operation and local programming levels of all of its television stations through 2017. The CRTC also approved Bell's proposed exemptions for maintaining ownership of CKGM. [27] [28]
Divestments
Following the approval of the new proposal by the Competition Bureau, Corus Entertainment reached a tentative deal to acquire 2 radio stations (CJOT, CKQB), along with Astral's stakes in Historia, Séries+, and the Teletoon networks from Bell for just over $400 million. Corus acquired the stakes in Historia and Séries+ from Shaw Media as well. On January 1, 2014, the acquisition was completed. In 2017, Corus attempted to sell Historia and Séries+ to Bell for $200 million, but the deal was blocked and rejected by the Competition Bureau for violations of conditions forbidding Bell from re-acquiring divested Astral properties for ten years. [29]
Bell Media also divested Family, Disney Junior's English and French services, Disney XD, MusiMax, MusiquePlus, and 5 other radio stations in Toronto and Vancouver (CHBM-FM, CFXJ-FM, CKZZ-FM, CHHR-FM and CISL) at auction. [18] These divested stations and channels were temporarily held in a blind trust by Pierre Boivin until the completion of their acquisitions. [30]
On May 16, 2013, the Jim Pattison Group announced a deal to acquire three stations in Calgary and Winnipeg from Bell and Astral—CKCE-FM, CHIQ-FM, and CFQX, for an undisclosed amount. The deal expanded the Jim Pattison Group's operations in Calgary (where it was planning to launch a new station, CHPK-FM), and gave the company its first stations in Manitoba. [31] On August 26, 2013, Newcap Radio announced its intent to acquire the five aforementioned Toronto and Vancouver stations. [32] Eventually, Newcap was in turn acquired by Stingray Digital Group in 2018.
On November 28, 2013, DHX Media announced that it had reached a deal to acquire Family Channel and its sister networks for $170 million, the deal was completed in late July 2014. [33] [34] On December 4, 2013, Remstar, owners of the French television system V, announced that it would acquire MusiquePlus and MusiMax for an undisclosed amount. [35]
$1.02 billion (2012) [1] 
