Bell Globemedia
:
Baton Broadcasting redirects here. For the defunct television system owned by Baton, see
Baton Broadcast System.
Bell Globemedia Inc. (unofficially, abbreviated "BGM") is one of
Canada's largest private
media companies. Its operations include such Canadian market leaders as
CTV,
TSN,
The Comedy Network, and
The Globe and Mail''.
BGM is presently 68.5% owned by
Bell Canada Enterprises and 31.5% by The Woodbridge Company Ltd., the family
holding company of the Thomson family, controlling
shareholders of
The Thomson Corporation.
On
December 2,
2005,
BCE announced it would sell an 8.5% interest to Woodbridge (increasing their total ownership to 40%), a 20% interest to
Torstar, and a 20% interest to
Ontario Teachers' Pension Plan.
BCE will retain 20% of the group - a condition that would ensure that ExpressVu, Sympatico, and other
Bell units continued to have access to Globemedia content - but as a result, the group will likely drop "Bell" from its name, if not change it entirely. The transaction was approved by the
CRTC on July 21, 2006.
BGM's core asset is CTV Inc., parent of the
CTV television network, Canada's oldest, largest, and (as of 2006) most-watched private
broadcast television network. CTV is also parent to a number of
cable/
satellite specialty channels, which include
The Sports Network and its
French-language equivalent
Réseau des sports,
Discovery Channel Canada,
The Comedy Network,
CTV Newsnet,
Report on Business Television,
MTV Canada, and various spinoff digital channels. CTV also owns 45% of number-three French-language network
TQS, as well as the
Atlantic Satellite Network, a regional channel in
Atlantic Canada, which is based around programming from
CHUM Limited.
Many of BGM's specialty channels are operated in partnership with
U.S.-based media companies such as
Discovery Communications (Discovery Channel),
Disney (TSN),
Viacom (MTV Canada), and
Comcast (
OLN Canada).
In addition, BGM owns
The Globe and Mail, Canada's largest national
newspaper, and
websites associated with all of the above properties.
Predecessor companies
Baton Broadcasting
For all practical purposes, Bell Globemedia is the successor to
Baton Broadcasting Inc. (first word
pronounced or
BAY-tawn), which by the late 1990s had become one of Canada's largest broadcasters.
Baton Aldred Rogers Broadcasting Ltd. was originally formed in 1960 to operate Toronto's first private TV station,
CFTO-TV. The original investors included the
Bassett and
Eaton families,
Joel Aldred and
Ted Rogers, and
Foster Hewitt in a much smaller role. Aldred sold his shares in 1961, followed by Rogers by 1970; with the Bassett and Eaton families firmly in control, the company went public in the early 1970s. CFTO became a CTV affiliate in October 1961, and soon after Baton became a part-owner in the network.
In
1972, the renamed Baton Broadcasting began purchasing other CTV affiliates, starting with
CFQC-TV Saskatoon. This did not, however, give Baton a substantially higher investment in CTV, which was structured as a
co-operative, not a traditional private company. Baton still only had one vote - as did every other CTV affiliate-owner.
In
1987, Baton expanded further into
Saskatchewan and into CTV, purchasing
CKCK-TV Regina, and CBC affiliates
CKOS-TV Yorkton, and
CKBI-TV Prince Albert. Two
twinstick CTV affiliates were soon launched in the latter markets,
CICC-TV and
CIPA-TV respectively.
In the late 1980s, Baton applied for a high-power station in
Ottawa on channel 60. The licence was approved, appealed by rival broadcasters, and ultimately sent back to the CRTC for review,
[Order Referring back to the CRTC a Decision Respecting Nation's Capital Television Incorporated, 28 April, 1987] but the licence was surrendered when
Allan Slaight instead decided to sell the local CTV affiliate,
CJOH-TV, to Baton.
In
1990, Baton purchased the
MCTV system of
twinstick operations in
Pembroke,
North Bay,
Sudbury,
Timmins, and the Huron Broadcasting twinstick in
Sault Ste. Marie. In
1993, Baton purchased
CFPL-TV London,
CKNX-TV Wingham and received a licence for a new independent station,
CHWI-TV, in
Windsor.
In
1991, the company launched Ontario Network Television, a secondary affiliation carried by Baton's CTV and
independent stations in Ontario. This was expanded in
1994 into the
Baton Broadcast System, or BBS, which included Baton's Saskatchewan stations. BBS was meant as a backup in case Baton's ongoing acquisitions did not translate into control of CTV itself. CTV had been recently restructured as a traditional private company, meaning that any
future acquisitions by Baton would come with all of that affiliate's CTV shares. It was around this time that former CBC executive
Ivan Fecan joined the company.
Baton-Electrohome Alliance
In 1996, the CRTC approved two major deals involving Baton. First was the acquisition of
CFCN-TV in
Calgary from
Rogers Communications, which had recently purchased
Maclean Hunter. Second, Baton and
Electrohome formed an alliance, under which the companies would share ownership of CFCN, Baton's stations in Saskatchewan and its independent stations in southwestern Ontario, and Electrohome's
CKCO-TV Kitchener. The deals doubled Baton's own interest in CTV to 28.6%, but also gave it control over Electrohome's shares, for a total of 42.9%.
[Decision CRTC 96-251, June 21, 1996]In January 1997, Baton-Electrohome's "Vancouver Television" proposal emerged as the CRTC's choice for the new independent station in
Vancouver, British Columbia, beating out four other competitors. The new station,
CIVT-TV, would compete directly with
WIC's two CTV affiliates in the market when it launched that fall.
[Decision CRTC 97-39, January 31, 1997]On
February 25,
1997, the Baton-Electrohome alliance and
CHUM Limited announced that several stations would be swapped between them, giving Baton control of CTV. Baton-Electrohome would acquire CHUM's
Atlantic Television System (ATV), consisting of four CTV affiliates in the
Maritimes, the
Atlantic Satellite Network (ASN), and a further 14.3% in CTV. CHUM would receive Baton's independent stations in southwestern Ontario, as well as
CHRO-TV Pembroke/Ottawa, which had recently disaffiliated from CTV.
Shortly thereafter, Electrohome announced it would sell its broadcasting assets – including its interest in the alliance, its CTV shares, and
CFRN-TV Edmonton – to Baton in exchange for shares in Baton. These two deals were approved by the CRTC in August.
[Decision CRTC 97-527, August 28, 1997] Baton acquired the remaining CTV shares from WIC and
Moffat Communications, which remained affiliates for the moment, that fall.
The BBS brand was summarily discontinued in favor of CTV, and the company itself was renamed CTV Inc. the following year. The Eatons' remaining shares, representing 41% of Baton, were sold off to the general public in early 1998. By the end of 2001, nearly all CTV stations would be consolidated under network ownership (including one replacement).
CTV Inc. continues to exist as a subsidiary of Bell Globemedia.
NetStar Communications
NetStar Communications Inc. (previously Labatt Communications Inc., and currently CTV Specialty Television Inc.) was formed by
Labatt Brewing Company to hold that firm's broadcasting assets, which included TSN, RDS and - as of 1995 - Discovery Channel. In 1995, when the parent company was sold to the foreign brewing conglomerate
Interbrew, a consortium of four Canadian investors -
Stephen Bronfman (22.5%),
Caisse de dépôt et placement du Québec (22.5%),
Reitmans (16.5%), and senior management (6.5%) - along with
ESPN, with 32%, took over the company.
[Broadcast Dialogue newsletter, January 21, 1999]After a takeover attempt by
CanWest Global that was vetoed by ESPN, CTV announced its acquisition of the company in early 1999, with CRTC approval the following year.
2000 to present
BGM in its current form was masterminded by former BCE chief executive
Jean Monty, largely as a response to
CanWest Global Communications's purchase of the
Southam newspaper chain as well as the trend of
media convergence. Monty believed that, to survive in a changing technological landscape, and in particular to drive subscriptions to
satellite television provider
Bell ExpressVu and
internet service provider Bell Sympatico, BCE had to have control over content.
In early
2000, under Monty, BCE acquired CTV Inc. in an all-cash transaction valued at $2.3 billion (
CAD).
[BCE announces $2.3 billion bid for CTV, CBC.ca, February 25, 2000 (modified November 11, 2000); accessed August 9, 2006] Soon after, Monty arranged to have Thomson Corp. transfer control of
The Globe and Mail, the
Toronto-based national newspaper, to BCE in exchange for a significant interest in the company that would become Globemedia. The Thomson family itself later bought Thomson Corp.'s interests.
The resulting company, known as Bell Globemedia, consisted of CTV,
The Globe and Mail, and the
internet portal then known as
Sympatico-
Lycos (Lycos was later replaced by
MSN). Fecan was named the combined firm's president and CEO, a role he continues in today. After Monty resigned and was replaced by
Michael Sabia in
2002, it became clear that Monty's vision was not producing anything near the desired results, notwithstanding the good results for the individual units, particularly the CTV network.
The following years provided a few cosmetic changes in BGM's assets. In 2001, CTV acquired
CKY-TV in
Winnipeg and
CFCF-TV in Montreal, and moved the CTV affiliation in British Columbia to CIVT, replacing two affiliates that had been purchased by CanWest. That fall also brought the launch of the first digital
specialty channels, including several owned by CTV.
The company acquired partial ownership in TQS in 2002, the Sympatico portal was sold back to Bell Canada, while a further investment from the Thomsons funded the acquisition of 15% of
Maple Leaf Sports & Entertainment. However, since BGM was first termed a non-core asset by BCE management in
2003, much attention has been given to its likely sale, and possibly a breakup into several different pieces.
The ownership shift announced in December 2005, described above, suggests any breakup is unlikely in the near future. However, Torstar's interest may raise further media concentration concerns, although that firm insists it is committed to maintaining the editorial independence of the
Globe and its own
Toronto Star.
On
July 12,
2006, Bell Globemedia announced a friendly bid to take over
CHUM Limited for an estimated $1.7 billion. Although likely to face immense regulatory scrutiny, the acquisition would bring a secondary broadcast system (
Citytv), as well as brands such as
MuchMusic,
Bravo, and
Space, into the BGM fold. CHUM's
A-Channel stations will not be retained by BGM.
*
Bell Canada*
Torstar Corporation*
Ontario Teachers' Pension Plan*
Official website*
Restructuring announcement
