BCE Inc. (Bell) currently owns a 15% equity position in CTV, but the media company has announced intentions to acquire 100% of the company, including its specialty and conventional TV, digital media, and radio broadcasting businesses. The purchase price is $1.3 billion.

Bell will be acquiring the remaining 85% of CTV from The Woodbridge Company Limited, the Toronto-based holding company of the Thomson family; Ontario Teachers Pension Plan; and Torstar Corporation. The equity value of the transaction is $1.5 billion, and together with $1.7 billion in proportionate debt, the total transaction value is $3.2 billion.

In a separate transaction, Woodbridge will acquire ownership of the Globe and Mail, in which Bell will continue to retain a 15% equity position.

"Our industry is changing rapidly," says George Cope, President and CEO of Bell Canada and BCE. "Acquiring CTV's range of premier video content enhances Bell's execution of our strategic imperatives by leveraging our significant broadband network investments, accelerating Bell's video growth across all three screens: mobile, online and TV, and achieving a competitive cost structure. One-hundred per cent ownership of CTV enables Bell to maximize strategic and operating synergies with CTV, including the efficiency of our content and advertising spend.

"In today's digital age, it is extremely important to be part of a vertically integrated company that can take advantage of video delivered on multiple screens," adds Ivan Fecan, CEO of CTV. "CTV has emerged stronger than ever from the recession, and is now perfectly positioned to take advantage of an improving economy. This is the right deal at the right time."

All of CTV's 5,000 employees will join the Bell team. CTV operates 27 stations across Canada, along with 30 specialty channels, including TSN and RDS. Other popular properties include MuchMusic.com, MTV.ca, CHUM Radio (and its 34 radio stations across the country), and TheComedyNetwork.ca.

The acquisition will be funded with a new bank facility of $2 billion, $750 million in new BCE common shares that will be issued to Woodbridge, and surplus cash on hand.

"Woodbridge is very pleased to make this sizeable equity investment in BCE," says David Thomson, Chairman of Woodbridge. "We are confident in Bell's ability to execute on the incredible growth opportunities in Canadian communications, including the increasing consumer demand for video across multiple platforms that will be well served by the acquisition of CTV.

The transaction is, of course, subject to customary approvals, including approvals from the Canadian Radio-television and Telecommunications Commission (CRTC) and the Competition Bureau. Closing of the transaction is expected by mid-2011.

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