Cogeco, Bell Globemedia buy TQS

Cogeco and Bell Globemedia have acquired Quebecor’s 86% interest in Television Quatre Saisons, subject to regulatory approval and the signing of a final agreement.

In the new TQS joint venture, 60% controlled by Cogeco and 40% by Bell Globemedia, Cogeco contributes its six regional Cogeco Radio-Television stations as well as its 13% interest in TQS. Bell Globemedia is contributing close to $74 million in cash for a total consideration of $104.4 million.

Quebecor receives $74 million from the sale, comprised of its share of TQS, worth $62 million, and repayable advances in the amount of $12 million.

‘Under Quebecor management, TQS reached the break-even point [last fiscal] for the first time in its history,’ says Pierre Karl Peladeau, Qubecor’s president and CEO. Following approval from the CRTC, Quebecor Media will officially incorporate the TVA Group and network.

In the new configuration, Radio-Canada will be obliged to independently re-establish its regional stations currently operated by Cogeco.

CAB transition response

The Canadian Association of Broadcasters recently filed its first-stage comments in response to Public Notice CRTC 2001- 62 Call for comments on a proposed policy to oversee the transition from analog to digital over-the-air television broadcasting. CAB’s filing provides details of the CAB’s DTV rollout proposal and underscores ‘the importance of measures such as priority carriage of Canadian signals and simultaneous substitution,’ a ‘Canada first’ approach to the carriage of Canadian signals, and the need for provisions to address undue preference concerns in a digital environment.

CAB says the principles embodied by the current broadcasting distribution regulations have been very effective in furthering fundamental broadcasting principles in an analog environment and that similar principles should apply to the distribution of over-the-air DTV signals during the transition.

CAB has also filed two submissions with Canadian Heritage and Industry Canada on Internet-related copyright issues consultation papers.

The CRTC deadline for the next round of comments on the analog-to-digital transition is Nov. 26.

CanWest works to reduce debt

CanWest Global will use $90 million in proceeds from its sale of CFCF-TV to CTV, which closed in mid-September, to pay down its debt, reducing its burden to $2.9 billion.

The company says it will also help shrink the debt by using proceeds from the $125 million it expects from the sale of CKVU-TV in Vancouver to Chum Television, which is still pending CRTC approval.

The company is also temporarily suspending its semi-annual dividend of $0.15 on its multiple voting shares, subordinate voting shares and non-voting shares, saving an annual $53 million.

In mid-September, CanWest announced the elimination of approximately 120 jobs at its newly acquired National Post newspaper.

CFTPA East

The CFTPA has established an Atlantic Council made up of its East Coast members to serve as a co-ordinated voice on national issues for the association.

‘CFTPA has long had an Ontario producers panel providing a voice from that province’s perspective. This council is a coming of age for the industry in Atlantic Canada,’ says CFTPA president and CEO Elizabeth MacDonald.

The council will deal with regional issues such as taxes and financing, industrial relations and new media development.

Halifax-based Collideascope Digital president Steven Comeau, a driving force behind the initiative, will act as head of the AC. The new council also includes Cellar Door’s Gretha Rose (Prince Edward Island), Mary Sexton of Rink Rat Productions (Newfoundland) and Chris Zimmer of imX communications (Halifax).

CanCap joins forces with Now Entertainment

CanCap World Media Plc (a London, Eng.-based corporation formed to pursue investments in the media and leisure industry within Canada, the U.S. and U.K.) has reached an agreement in principle to acquire a 50% interest in Toronto production company Now Entertainment.

Now recently wrapped the feature film Triggerman, starring Donnie Wahlberg, and is developing 16 additional features, including High Driving, slated to go into production in the spring. Besides the $6-million acquisition cost, CanCap has also agreed to provide $64 million in funding for the completion of the 16 films in development at Now.

The newly created partnership will be led by producer Peter O’Brien (The Grey Fox), who will act as chairman. CanCap founder and chairman Aniz Manji will take on the title of vice-chairman of Now. Producer John Gillespie (Triggerman, Full Disclosure) will be the CEO of the new partnership.

eNblast Acquires Electric

eNblast Productions has entered into a roughly $1-million agreement to acquire all of the issued and outstanding shares of Electric Entertainment, a Toronto television, radio and new media company.

eNblast, a Toronto-based entertainment and new media company that produces and distributes interactive audio and video content with a focus on convergence, trades publicly on the Canadian Venture Exchange under the symbol YNR.

Looking to build its library of entertainment content, the pubco has agreed to provide six million common shares of eNblast to the shareholders of Electric. In addition, $300,000 ($330,000 if payment is received after Oct. 31) will be provided to Electric to fund its ongoing productions.

Electric’s Paul Osborne and Jane Hawtin will remain with the new entity. eNblast president Peggy Zock will work closely with Hawtin. A name change is also expected.

Mainframe management changes again

Despite being credited with increasing Mainframe Entertainment’s licensing and merchandising activities, Lou Novak has resigned his post as CEO of the Vancouver

animation company after only three months. He will stay on as a

consultant.

Brett Gannon, formerly CFO, is promoted to president and chief operating officer.

Mainframe cofounder Ian Pearson, executive producer on many productions, also resigned his newly created position of chief creative officer after three months and it’s unclear what, if any, continuing role he might have.

Mainframe representatives did not respond to calls about the changes. ‘The company needs to realign its cost structure to fit the new business model that it has adopted,’ says Novak in a release.

Mainframe’s shares closed at $0.50 on the Toronto Stock Exchange Sept. 26. The year high is $2.49 per share and the year low is $0.43.

Valenti to make keynote

at CFTPA confab

JACK Valenti, president and CEO of the Motion Picture Association of America, will make the keynote address at the CFTPA’s Conference 2002, taking place Feb. 6-8, 2002 in Ottawa.

He’s expected to discuss issues of mutual interest to Canada and the U.S., including copyright.

Valenti is the longest serving president of the MPAA. He took the post in 1966 and is one of three people to helm the organization since it was founded in 1922. *