(February 25 – 09:40 ET) – BCE Inc. is offering $2.3 billion cash for CTV Inc.
This move heralds the convergence of the online and establishment media businesses in
Canada — similar to the recent landmark AOL-Time Warner deal in the U.S.
BCE says that content is the core element of its strategy for providing integrated information, communications and entertainment services for consumers. CTV offers national and local market content for BCE’s Sympatico-Lycos online joint venture.
“Our Canadian strategy focuses on three elements of the Internet – connectivity, content and commerce. Our customers do not want to connect just to a network, they are looking for connections to destinations and experiences as such as those available via our Sympatico-Lycos portal and our various city web sites. That’s why BCE must have greater access to original and distinctive content which will be considerably augmented through our ownership of CTV,” says Jean Monty, president and CEO of BCE.
“The convergence of TV and the Web also opens up unlimited opportunities for e-commerce. Our Sympatico-Lycos portal and its network of sites will be the prime destination for Canadian business to consumer and consumer to consumer marketplace.”
BCE is offering $38 per share in cash for CTV. The deal is contingent on at least 50% of CTV going to BCE, as well as CRTC approval of this deal and of CTV’s proposed acquisition of NetStar. CTV says its board has been notified and will be meeting shortly to consider the bid.
Monty says that today’s offer for CTV is an important element of BCE’s overall strategy. “Our investments in Bell ExpressVu, Bell Nexxia, Aliant, MTS and our Sympatico-Lycos portal, and now the offer for CTV, exemplify this strategic direction. We will also create a global business communications enterprise anchored on our leading position in Canada. BCE’s investments in Emergis, CGI and our recent acquisition of Teleglobe are key elements of our global strategy.”
-IE Staff