CRTC approves station swap between Cogeco Media and Arsenal Media

While the big news of the day was its approval of the Shaw-Rogers purchase, the CRTC also approved a pair of smaller transaction on Thursday, in which Quebec’s Cogeco Media and Arsenal Media agreed to sell stations to each other.

Under one deal, Arsenal acquires, for $1.5 million, three stations in the Abitibi region:

  • CJGO-FM 102.1 La Sarre (Capitale Rock), with transmitter CJGO-FM-1 Rouyn-Noranda
  • CHGO-FM 95.7 Val-d’Or (Capitale Rock)
  • CHOA-FM 95.7 Rouyn-Noranda (WOW), with transmitters CHOA-FM-1 103.5 Amos and CHOA-FM-2 103.9 La Sarre

In the other deal, Cogeco acquires, for $600,000, one station from Arsenal in Saguenay:

  • CILM-FM (O 98.3)

The Abitibi sale didn’t bring up major issues, except for the fact that they were formerly RNC Media stations, which Cogeco bought in 2018, which means there are still tangible benefits related to that transaction. Cogeco has agreed to continue to pay those benefits despite no longer owning the stations.

Arsenal plans to convert the stations to its brands, which include O, Plaisir and Hit Country. They will be Arsenal’s first stations in the Abitibi market, adding to its 16 stations in regions throughout Quebec.

For Saguenay, there was a bit of a thorny issue in terms of competition. Because Cogeco owns another station in Saguenay, and a third in nearby Alma, there was concern it might exceed its ownership limit. Analysis showed the Alma station didn’t cover enough of Saguenay to be an issue, but there was some overlap in the Alma market. Nevertheless, because no other broadcasters complained and Cogeco said it would not seek out advertising in Alma from its Saguenay stations, the CRTC allowed the acquisition to proceed.

Cogeco plans to convert CILM-FM to a Rythme FM station, giving the network a presence in all five of Quebec’s largest population centres and more than half the province’s population.

As a result of this issue being decided, the CRTC has reopened a proceeding into whether Rouyn-Noranda should get another radio station. Josyane Cossette has applied for a commercial radio station while CHOW-FM (Radio Boréale) in Amos applied for a retransmitter in Rouyn-Noranda. Other broadcasters can file applications to compete with these if they want to serve the market.

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