Quebecor still wants to buy Corus Entertainment, and it’s not being quiet about it. The Quebec media giant (and parent of Freedom Mobile, Videotron and Fizz) filed a letter with the CRTC this week, asking the regulator to reject Corus’s own restructuring plan and clear the way for a takeover instead.
Quebecor president and CEO Pierre Karl Péladeau argued Corus needs buyers who actually know broadcasting, not creditors just trying to recoup their cash. He said the broadcaster’s future “must be achieved through a takeover by strong players with audiovisual industry expertise and a long-term strategic vision, not by creditors converted into shareholders whose logic is driven primarily by short-term financial recovery, with no genuine contribution to the cultural sphere,” according to the letter, reports the Toronto Star.
Corus has already turned Quebecor down before, and it’s pushing ahead with its own plan, one that would see lenders forgive about $500 million in debt for 99 per cent ownership of a new parent company called NewCo. Current shareholders would keep just 1 per cent. The plan got court approval in March after a shareholder vote failed in January, but it still needs approval from the CRTC.
Corus CEO John Gossling addressed the proposal Friday on an earnings call but didn’t touch Quebecor’s letter directly. And the earnings themselves were pretty rough, again: a $36.5 million net loss for the quarter, with revenue down 16 per cent from last year.
Péladeau also warned that letting the current deal go through could hand Bell too much control over English-language media in Canada. “Corus’ assets represent an essential national infrastructure for Canada and its culture,” he said.
Not everyone agrees with Quebecor’s pitch, as a group of minority shareholders wants the CRTC to reject the deal too, worried that NewCo’s expected top shareholder, an investment fund, lacks broadcasting experience. Unifor isn’t asking for a rejection, just conditions, such as no layoffs and no station closures, which is pretty much on par.
Want to see more of our stories on Google?
P.S. Want to keep this site truly independent? Support us by buying us a beer, treating us to a coffee, or shopping through Amazon here. Links in this post are affiliate links, so we earn a tiny commission at no charge to you. Thanks for supporting independent Canadian media!
