Early Monday, Rogers Broadcasting announced its plan to acquire conventional and specialty television services including the A-Channels, Access Alberta and SexTV from CTVglobemedia for $137.5 million.

The all-cash transaction includes the A-Channel station group (CIVI Victoria, CHWI Windsor, CKNX Wingham, CFPL London, CKVR Barrie, CHRO Ottawa); CKX-Television, an over-the-air conventional CBC affiliate based in Brandon, MB; the educaster ACCESS Alberta; Canadian Learning Television; and the digital SexTV: The Channel. The deal will go through only if the CRTC approves CGM’s takeover of CHUM.

‘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,’ said Rogers Broadcasting president Rael Merson in a statement.

‘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,’ added CGM president and CEO Ivan Fecan.

The proposed sale is a smart move for CGM, according to Sunni Boot, president and CEO of the Toronto media buying firm ZenithOptimedia. ‘Obviously, Rogers are no fools, so if they’re willing to pay that price tag, they must see value.’

Boot sees the deal as both ‘good news and bad news. Those stations are well, well down the consideration list, but they are excellent to put in the portfolio because they do tend to balance our costs. For us to have another player, an independent company, is a good thing,’ she says. ‘But I don’t really see the stations taking off. There’s not a lot of growth in the conventional area.’

Scott Stewart, an account director with Toronto-based Genesis Media, says the deal will mean some content challenges. ‘Just to see another company enter the market, any wisp of smoke that offsets the whole commoditization — for me, that’s a good thing,’ he says. ‘With the Alberta stations changing hands so many times, you’ve got to wonder about the actual value of them in a portfolio. But this is a good step into TV. They’ll remain an efficient buy,’ he says.

‘The issue is how are they going to source content? I don’t understand how a third-tier station like this will be able to really compete out there. With CHUM, you had existing content they could shuffle or spill out to other stations, but now they’re starting over.’

From Media in Canada