CHUM deal with Quebecor likely to aid CRTC approval of Craig purchase
News | 08/27/2004 4:00 am EDT
CHUM Ltd. has overcome a major hurdle in receiving CRTC approval for the acquisition of Craig Media with its announcement last week that it had reached an agreement to sell recently launched conventional station Toronto 1 to Quebecor Media. In agreeing to purchase financially strapped Craig Media for $265 million in cash, CHUM has always maintained that it would hold Toronto 1 in trust until another buyer could be found. Maintaining Toronto 1 would be next-to-impossible for CHUM, which already owns over-the-air TV stations in Toronto and nearby Barrie ON, due to broadcast regulations that prevent multi-station ownership in a market. In interrogatories in conjunction with CHUM’s application for approval to acquire the Craig Media properties, the CRTC asks the Toronto-based broadcaster if it would be prepared to continue with the application in the event that the commission were to deny the transfer of Toronto 1 and/or Craig Media’s digital specialty TV channels to CHUM.