It’s been nine years since a pair of local businessmen came onto the scene and declared they wanted to change how commercial radio works in this city with an $81-million bid for Corus radio stations in Quebec that were being sold to Cogeco. Eight years since, with a third partner, they got a licence for a station on the clear channel of 940 AM. Seven years since they got a second licence for 600 AM. Three years since the first station went on the air. Two years since the second station joined it.
For all that time, we’ve been waiting for something to happen. Waiting for the Bell-Astral deal to conclude, in case they had to sell one of their stations (the transaction closed in 2013). Waiting for TTP Media to solve various technical problems with their transmission site. Waiting for them to build a studio and hire talent. Waiting for the launch of regular programming, that has been promised “soon” for three years.
As it stands, the French station, CFNV 940, has spoken word programming through an agreement with online radio station CNV. CFQR 600, the English station (no relation to the old CFQR-FM at 92.5), is still running an automated music playlist. It’s been a while since we’ve heard from the owners.
But a few weeks ago, Nicolas Tétrault, one of the three partners, posted a video on LinkedIn apparently seeking foreign investment in the stations.
In the seven-minute video, Tétrault talks about the duopoly in commercial radio in Montreal, with Bell Media and Cogeco Media owning most of the market share here, how “extremely complicated” it is to enter the market when there is “no financing available for radio stations,” and how the company owns “millions of dollars of equipment” but has no debt.
“It is impossible to find financing in Quebec,” Tétrault said. “The banks, they don’t lend to media, private funds don’t lend, pensions … no funds are available.”
Tétrault’s invitation notes that foreign investors can own up to 30% of a broadcasting company, and he tags his post with the United States, United Kingdom, France, India, Israel and the Cayman Islands.
This is the first I’ve heard about TTP Media needing money. In its initial applications to the CRTC, the group said its partners were investing $4.5 million, added to a $21 million loan from James Edward Capital Corporation, to provide financing to launch the stations.
Two years ago, when I asked Rajiv Pancholy about finances, he reassured me that it wouldn’t be an issue because he has negotiated loans worth hundreds of millions of dollars in the past and “I have the credibility in Canada on Bay St. and Wall St.”
Tétrault might not have that kind of credibility though, since he just went through a personal bankruptcy. A judge discharged the bankruptcy trustee on Jan. 18.
Finally, it’s curious that Tétrault makes no mention of his other partner, Paul Tietolman, though he mentions Pancholy twice (using “partner” in the singular). Rumours abounded about a rift between Tietolman and his partners, which all three had denied. A change in ownership would require CRTC approval.
Neither Tétrault, Pancholy nor Tietolman responded to my requests for an interview.