CTV Ups Fund Payments In CHUM Deal
May 3, 2007 at 5:46 AM (PT)
CTVGLOBEMEDIA sweetened the pot for its acquisition of CHUM LTD. on WEDNESDAY, adding $27 million to its proposed payments to the fund supporting Canadian broadcasting. The additional payment reflects the CRTC adding $300 million in CHUM debt to the acquisition price of $1.4 billion, which was used to calculate the original $103.5 million contribution to the fund.
The deal, which would put CHUM's radio and TV stations under common ownership with the CTV TV network, is widely expected to be approved by the CRTC, although the merged company may be ordered to spin off the five CITY-TV stations; it is already spinning off the A-CHANNEL TV stations in ONTARIO and VICTORIA, BC to ROGERS.