Montreal: The CRTC has approved Quebecor Media’s acquisition of Groupe TVA’s regulated assets, including Quebec’s leading private-sector broadcaster Reseau TVA, following its May decision approving Quebecor’s takeover of Le Groupe Videotron.

The commission says the approval ‘will only be effective provided a third party not associated with Quebecor or any of its affiliates files an application for authority to acquire TQS,’ and that the CRTC deems the application to be complete and TQS is placed in trust.

Of special interest to the independent production sector, and by a majority vote, the commission has established the value of the acquisition benefits package at $48.9 million, almost $14 million more than the $35 million proposed by Quebecor (based on an acquisition price of $489 million).

TVA’s new owner is also obliged to submit a proposal establishing independent committees to evaluate proposals for priority and youth programming funding, and development funds for interactive content.

The decision also obliges Quebecor to file a detailed annual report demonstrating the acquisition benefits, especially those associated with the creation of new priority programming and other on-screen projects, are in fact incremental to existing TVA commitments.

The CRTC has also renewed (2001-385) the licences of Reseau TVA and its flagship Montreal station CFTM-TV.

TVA is active in broadcasting – the network has a 30% to 40% share of the Quebec viewing audience – and in the production and distribution of TV products and films. TVA has been licensed for national distribution since 1998.

TVA also holds, directly and indirectly, majority and minority interests in Category 1 and 2 specialty digital television services and analog specialty services including all-news service LCN, travel channel Canal Evasion and pay-per-view service Canal Indigo. It holds a 30% interest in the Global Quebec station CKMI-TV Quebec City, and is the sole owner of affiliate production company JPL Production. It holds a 70% interest in TVA International (the former Motion International), reportedly on the selling block following a major write-down of assets.

TVA is also one of the leading publishers of French-language specialty arts and entertainment magazines, and holds an interest in the Internet portals InfiniT and Netgraphe.

Quebecor controls 54.7% of Quebecor Media. Capital Communications CDPQ, a subsidiary of the Caisse de depot et placement du Quebec, holds the balance. *

-www.reseau.tva.ca

-www.quebecor.com/crtc