BCE Inc.’s Bid for Astral Media Inc. is Being Opposed by Competitors

By: Kuljit Grewal  |   August 8th, 2012   |   Business, Living, News, O Canada

It seems that BCE Inc.’s proposed $3.38 billion takeover of Astral Media Inc. is facing public opposition from three competitor firms. Cogeco Cable Inc., Eastlink and Quebecor Inc. have stepped up their challenge, stating that Bell will become too large to compete fairly as the CRTC and Competition Bureau get set to review the terms of the deal in a month’s time.

 

The trio have called on consumers to voice their disdain concerning their deal, stating that if Bell is allowed to acquire Astral the company will reduce competition, resulting in Astral’s former customers being pressured into paying higher prices for cable service while also being swayed into acquiring internet and telephones services from Bell.

 

BCE Inc. originally made the takeover offer in March with Astral’s shareholders showing overwhelming approval of the deal in May. The company has been attempting to grow aggressively lately, acquiring the CTV Network and their sports station TSN last year. They also partnered with Rogers Communications Inc. to acquire Maple Leaf Entertainment Inc.

 

This move, if approved would bring BCE 70 TV channels and 107 radio stations under their umbrella, making it the largest player in both fields. According to the opposition trio, the deal would give Bell 38 per cent of Canadian viewership, well above the CRTC 35 per cent threshold.

 

BCE has countered this stating that they would only represent 24 per cent of Quebec, trailing local firm Quebecor. Their English TV viewership would total 33.5 per cent, below the aforementioned threshold.

 

It remains to be seen what the decision will be, however there is no denying that the impact will be considerable. Bell, has been expanding to offer complete viewership by offering content as well the systems that bring said content into homes. This coup would represent a major push for the company into Quebec, where significant investment and resources have been put towards the development of a strong LTE network, which just so happens to be another of Bell’s areas of interest.