The Financial Post details the business moves made by Rogers CEO, Nadir Mohamed, and how his key decisions have affected the company, since he took up the position four years ago. Recently, Rogers announced it had made a $700 million deal with Shaw to acquire Mountain Cablevision and the latter’s unused wireless spectrum (Rogers also sold off a 33.3% stake of TVtropolis for $59 million).
This purchase of Mountain Cablevision seemingly makes up for Mohamed’s lost opportunity when the company was outbid by Shaw years ago for the TV network, which “infuriated” the Rogers family at the time:
On Monday, however, Mr. Mohamed reclaimed a tiny asset that had slipped through his hands in 2009 — and infuriated the controlling Rogers family — but that will have much larger impact on Rogers in the future.
Rogers acquired Mountain Cablevision Ltd., a family-operated full service high-speed Internet, telephone and cable provider with about 41,000 subscribers based in Hamilton, Ont. for $400-million on Monday as part of a transaction that also secured all-important unused airwave spectrum in Western Canada.
Of course, Rogers could have owned Mountain Cablevision for $300-million, the price paid by arch rival Shaw Communications Inc. when it outbid Rogers by a mere $10-million. Back then, Mr. Mohamed had blown an exclusive opportunity to negotiate a deal for the small operator long considered a natural fit with Rogers’ cable TV services in nearby Brantford.
Shaw benefited from the sale as they made a 25% return on Mountain Cablevision, but the deal reflects Shaw’s loss of their unused AWS wireless spectrum, which they paid $190 million for in 2008–Rogers will have the option to purchase this for $50 million. In a nutshell, the article gives an overview of the slow and steady approach Mohamed has taken with Rogers — a contrast to the late valiant Ted Rogers — which looks to pay off in the long term.
For longtime Rogers customers–what are your reflections on the company under the leadership of Mohamed?