Bell Media
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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.
Ownership
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 has received CRTC approval but has not yet been completed.
Operations
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.
History
Early history: Baton Broadcasting
For all practical purposes, Bell Globemedia is the successor to Baton Broadcasting, originally formed in 1960 to operate Toronto's first private TV station, CFTO-TV. Baton, which was largely held by the Bassett and Eaton families until the mid-1990s, eventually became a partner in the CTV network, and over the ensuing decades bought up several other CTV affiliates.
Ivan Fecan joined the company in 1994; under the Fecan regime, Baton accelerated its acquisition of stations, culminating in the purchase of CTV itself in 1997. Baton, now renamed CTV Inc. (and with the Bassett and Eaton shares sold off to the general public), acquired NetStar Communications, parent of TSN and Discovery, in 2000. By the end of 2001, nearly all CTV stations would be consolidated under network ownership (including one replacement).
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. 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. 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: 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.