Tag Archives: Cogeco Media

CRTC approves Cogeco acquisition of 10 RNC Media stations

The CRTC has approved the $18.5-million acquisition of 10 RNC Media radio stations by Cogeco, representing two thirds of RNC’s network of stations.

Affected stations are:

  • Planète 104.5 in Alma
  • Planète 93.5 in Chibougamau
  • Planète 99.5 in Roberval
  • Planète 100.3 in Dolbeau-Mistassini
  • Radio X 95.7 in Saguenay (repeater at 96.3 Alma)
  • Capitale Rock 104.3 in Val-d’Or
  • Capitale Rock 102.1 in La Sarre (repeater at 95.7 Rouyn-Noranda)
  • WOW 96.5 in Rouyn-Noranda (repeaters at 103.5 Val d’Or and 103.9 La Sarre)
  • Pop 104.9 in Lachute
  • Pop 102.1 in Hawkesbury

Of the remaining stations, two are being sold to Leclerc Communication:

  • CKLX-FM (91,9 Sports) in Montreal
  • CHOI-FM (Radio X) in Quebec City

The remaining three are presumably on the market with no sale announced yet (but I’m told there are talks with at least one potential buyer):

  • CHXX-FM (Pop 100.9) in Donnacona (serving Quebec City, repeater at 105.5 Lotbinière)
  • CFTX-FM (Pop 96.5) In Gatineau (repeater at 107.5 Buckingham)
  • CHLX-FM (Wow 97.1) in Gatineau

The acquisitions bring Cogeco’s radio network from 13 to 23 stations, and means Cogeco’s first expansion into the Saguenay and Abitibi regions. Of population centres over 15,000, the only ones that wouldn’t be within 100 kilometres of a Cogeco transmitter will be Rimouski and Sept-Îles.

A map of Quebec’s major commercial radio networks: Cogeco Media (purple), RNC Media (red, with approved sales in reddish purple), Bell Media (blue), Attraction Radio (black) and Groupe Radio Simard (gold). Retransmitters are in a lighter colour.

Notable aspects of this transaction:

  • Cogeco plans no immediate change to the “vocation” of the radio stations, which will remain local.
  • Cogeco plans to introduce local newscasts to the Lachute station. For other stations, the benefits come mainly through access to the infrastructure of Cogeco Nouvelles.
  • The commission has accepted Cogeco’s proposed tangible benefits of $1,184,217, based on a total transaction value of $19,736,958. The breakdown uses the standard formula for radio, with:
    • $592,109 (3%) to Radio Starmaker Fund or Fonds Radiostar
    • $296,054 (1.5%) to FACTOR or Musicaction
    • $98,684 (0.5%) to the Community Radio Fund of Canada
    • $197,370 (1%) to discretionary initiatives
  • The nature of the discretionary initiatives isn’t specified, but Cogeco said it would include six-week paid internships at its radio stations. The commission pushed back on this (tangible benefits are not allowed to be self-serving), and Cogeco responded by saying it would use $10,000 a year for bursaries instead. The rest of the discretionary money would go to local initiatives, broken down as follows:
    • $10,000 a year in the Saguenay region
    • $5,000 a year in the Abitibi region
    • $3,196 a year in the Lachute-Hawkesbury region
  • The contract includes a 36-month service contract for RNC Media to continue providing local news, office space, outdoor advertising, transmitters and technical support for the stations in the Abitibi region after the deal closes. Following that, Cogeco will rent space for three transmitters at two sites from RNC for $5,000 a year each for 10 years (indexed to the consumer price index), and two transmitters at a third site for five-year renewable leases for a price to be negotiated.
  • The radio stations (bought by Cogeco) and TV stations (retained by RNC Media) in the Abitibi region will continue to cross-promote for a period of 24 months after the acquisition. The exact value of these ads is confidential, but will be the same for both sides. A similar ad exchange deal is in place for Cogeco’s CKOF-FM (104,7) and RNC Media’s TV stations in Gatineau, even though those stations aren’t part of this transaction.
  • Cogeco acquires the WOW brand (used by CHOA-FM in Val-d’Or) and gives RNC Media a licence to continue to use the brand for its Gatineau station. Cogeco also acquires the Planète and Capitale Rock trademarks.
  • RNC Media holds on to the POP brand (used by CFTX-FM in Gatineau and CHXX-FM in Donnacona) but gives Cogeco licence to use it for the Rouyn-Noranda station.
  • RNC also keeps the Radio X brand, which is used by CKYK-FM in Saguenay. Cogeco can use the KYK logo, but without any mention of Radio X. There does not appear to be transition allowance here, which means it would have to change the branding as soon as the deal closes.
  • Cogeco says of the 220 on-air employees it will have if the transaction is approved, 92 (42%) are women, 4 (2%) people with disabilities, 2 (1%) visible minorities and 1 (0.5%) Indigenous person. (In the application, Cogeco gets the math wrong by two decimal places on the last three percentages there, making it look even worse.)
  • About 55 employees will move with the stations — 10 in Abitibi, 44 in Saguenay and one in Lachute. Three of those employees are currently on leave.
  • The deal will close on the first of the month after CRTC approval. This is listed as the only remaining condition for closing.
  • The deal includes a non-compete agreement for Val d’Or, La Sarre, Rouyn-Noranda, Lachute, Hawkesbury, Amos, Dolbeau, Roberval, Alma, Chibougamau and Saguenay, for a confidential period.

Cogeco Media to acquire 10 of RNC Media’s 15 radio stations

RNC Media is vastly decreasing its role as a major radio broadcaster, and has agreed to sell 10 of its 15 radio stations to competitor Cogeco for $18.5 million.

Affected stations are:

  • Planète 104.5 in Alma
  • Planète 93.5 in Chibougamau
  • Planète 99.5 in Roberval
  • Planète 100.3 in Dolbeau-Mistassini
  • Radio X 95.7 in Saguenay (repeater at 96.3 Alma)
  • Capitale Rock 104.3 in Val-d’Or
  • Capitale Rock 102.1 in La Sarre (repeater at 95.7 Rouyn-Noranda)
  • WOW 96.5 in Rouyn-Noranda (repeaters at 103.5 Val d’Or and 103.9 La Sarre)
  • Pop 104.9 in Lachute
  • Pop 102.1 in Hawkesbury

The sale leaves RNC Media with five stations in its three largest markets:

  • CKLX-FM (91,9 Sports) in Montreal
  • CHOI-FM (Radio X) in Quebec City
  • CHXX-FM (Pop 100.9) in Donnacona (serving Quebec City, repeater at 105.5 Lotbinière)
  • CFTX-FM (Pop 96.5) In Gatineau (repeater at 107.5 Buckingham)
  • CHLX-FM (Wow 97.1) in Gatineau

Cogeco already has two French-language FM stations in Montreal and Quebec City, which means there was no point in Cogeco acquiring them. It has one station (CKOF-FM 104,7) in Gatineau. The acquired stations will be its first in the Saguenay and Abitibi regions.

RNC Media also owns TVA and V affiliates in Gatineau and Abitibi-Témiscamingue. It recently announced it was shutting down its Radio-Canada affiliate in Abitibi, CKRN. RNC said the Montreal, Quebec and Gatineau stations were “not on the market.”

The sale requires approval by the CRTC before it can proceed.

We should also expect some of these stations to join Cogeco’s network brands, particularly Rythme FM.

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Cogeco lays off The Beat program director Sam Zniber as it plans corporate reorganization

Sam Zniber, who was brought in almost two years ago to manage programming at The Beat 92.5, is no longer employed by the station.

Cogeco Media President Richard Lachance says the company (which recently changed its name from Cogeco Diffusion) is undergoing a corporate reorganization, and “Mr. Zniber did not form part of that plan.”

Staff was told about Zniber’s departure on Monday, without being given much of an explanation for it. According to one Beat staff member, he was supposed to be coming back to work after a sick leave.

Zniber could not be reached for comment.

Martin Tremblay, who used to be part of the management team at Astral/Bell Media’s Montreal radio stations, will continue in as interim program director for now, Lachance said. Though Zniber’s departure was only recently made official, Tremblay has been interim program director since early March.

Lachance rebuffed several of my attempts to explain the nature of the corporate reorganization, whether it would result in fewer managers, or whether The Beat would continue to have its own management. Lachance said he did not want to discuss the plans before they are announced to staff, which he said should be done within the next month.

Zniber was a surprise choice for PD in 2014, since he had no experience in the Montreal market or even in Canadian radio. He had worked in France, the UK, Australia, and Miami. This was his eighth job since 2000, according to his LinkedIn profile.

Zniber’s legacy at The Beat is mixed. During the 2014-2015 winter ratings period, the station jumped to a surprise 20% market share, well ahead of direct competitor Virgin Radio, which it had long trailed. Zniber told me he expected the station to continue to outperform its competitor, while the Virgin/Bell Media folks said The Beat’s ratings spike was due to running Christmas music in December and they’d come back down. The next ratings book proved Bell right, but Virgin and The Beat remain neck and neck in the ratings overall.