Fresh from this week's Spring 2007 Canadian radio ratings (pdf) from BBM, Astral Media announced their purchase of Standard Radio has been officially accepted and approved by both companies.
The transaction is still subject to customary conditions, including a review by the Competition Bureau and the approval of the CRTC. If fully approved by the government, its expected to finally close and trade hands in early 2008. Once done, it would create a new owner for the title of Largest Radio Broadcasting Group in Canada.
The big get bigger and the super-sizing radio trend of the past year continues in Canada (although not in the same way as it's been lately in the U.S.).
According to All Access.com this morning:
"ASTRAL MEDIA makes it official and announces a definitive agreement to buy STANDARD RADIO for C$1.08 billion (C$880 million cash and the rest in Astral Class A non-voting shares). Astral adds 52 stations across Canada in the deal, plus INTEGRATED MEDIA SALES, SOUND SOURCE NETWORKS, STANDARD INTERACTIVE, and CBC affiliates CFTK-TV/TERRACE, BC and CJDC-TV/DAWSON CREEK, BC. The companies had earlier announced that Astral had entered into exclusive negotiations to buy Standard."More importantly, it expands Astral Media beyond just its French-language radio properties, absorbing Standard's national English-radio market presence...and placing Astral Media (in combination with Standard) in a new multi-media head-to-head competitive Battle of the Titans with Corus Entertainment -- which will get bumped in status to 2nd-largest radio group of owned properties in Canada.
Correction: Although Standard Radio did sell off its Standard Interactive division in the Astral Media acqusition, apparently Standard's President/CEO Gary Slaight is keeping some key brands.
The Globe and Mail reports Standard will be holding onto its Iceberg Radio assets (as well as its stake in Sirius Canada) and not sell Iceberg in the Astral Media acquistion. (thanks for the tip, Captain Phil!)
posted by Chris Kennedy @ Thursday, April 12, 2007,
- At 7:01 PM, Phil said...
I don't think they took the Iceberg on-line properties. In the press conference, the Astral head of Radio mentioned they were focused on terrerstrial radio.
I may be mistaken, as I don't have transcripts but it may be worth a fact-check.
- At 7:57 PM, KennedyCS said...
Note: Iceberg Radio is owned by Standard Interactive, which is part of Standard's sale to Astral Media.
- At 6:10 PM, KennedyCS said...
Note this Globe and Mail article regarding Standard holding on to Iceberg (http://www.theglobeandmail.com/