So Rogers wants to buy Cogeco's Canadian assets. Beyond the telecom considerations, this would mean Rogers takes control of Cogeco Media, including radio stations like 98,5, Rythme FM, CKOI and The Beat. Rogers is already a minority shareholder in Cogeco. globenewswire.com/news-release/2…
Television subscribers in Canada:
Bell 2,820,284
Shaw 2,259,093
Rogers 1,606,213
Videotron 1,440,097
Telus 1,127,676
Cogeco 627,608
Rogers + Cogeco: 2,233,821
(Cogeco figures from last quarterly report, others from CRTC reports of Aug. 31, 2019)
Rogers owns 54 radio stations and Cogeco 23. Combined, their 77 stations would just surpass Stingray to become the #2 radio broadcaster in Canada (by number of stations), behind only Bell at 109.
Rogers and Cogeco’s radio stations don’t overlap (Rogers doesn’t own any French stations, and no stations in Montreal), so in theory this part of the transaction wouldn’t pose any competition concerns for the #CRTC.
We’re still waiting for Cogeco to say anything about this offer to buy it.
If Cogeco is sold to Rogers, this would render moot Cogeco’s plan to enter the wireless service market, which it has been looking at (and asked about) for years.
And here we go: Audet family, which controls Cogeco, says it does not support the Rogers/Altice purchase offer newswire.ca/fr/news-releas…
Quebec Premier François Legault says it’s “out of the question” that Quebec loses another headquarters if Montreal-based Cogeco is sold to Rogers (starts at 17:15) fm93.com/audio/329929/e…
In 2000, Rogers had a deal to buy Videotron. That deal was blocked by the Caisse de dépôt, which then financed Quebecor’s purchase of Videotron.
The difference is that the Caisse had veto rights over a Videotron sale. It doesn’t have this power with Cogeco.
In fiscal 2019, Cogeco’s Canadian broadband segment earned $689 million in adjusted EBITDA. With a $4.9 billion purchase price, it would not take too long for Rogers to make its money back.
If the Rogers/Cogeco deal goes through and no divestments are required, 45% of all Canadian commercial radio revenue would be controlled by two companies (Bell and Rogers) blog.fagstein.com/2020/09/02/rog…
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