Leading Canadian communications and media company Rogers Communications Inc.’s (RCI - Free Report) subsidiary, Rogers Media, Inc., recently signed a deal to purchase broadcasting company – Tillsonburg Broadcasting Company Limited (TBCL).
Rogers Media is a diversified media platform which offers radio and television broadcasting, sports entertainment, publishing and digital media properties. At present, Rogers Media operates 52 Radio stations, 24 TV stations, 57 publications, 93 websites and 124 partner sites.
Tillsonburg Broadcasting Company Limited or TBCL is a broadcasting company which controls the licenses of 2 radio stations – CJDL-FM (broadcasted at 107.3 FM) and CKOT-FM (broadcasted at 101.3 FM). The CJDL-FM is branded as Country 107.3 and CKOT_FM operates under the brand Easy 101. These radio stations serve the greater Southwestern Ontario area, including Tillsonburg, and major centers such as London, Kitchener-Waterloo, Woodstock and St. Thomas.
The transaction is expected to close in the beginning of 2017, subject to regulatory approvals from the Canadian Radio-television and Telecommunications Commission (CRTC).
Rogers Communication’s Radio Prospects
Rogers Radio, division of Rogers Media and sub-division of Rogers Communications,is the largest radio broadcaster in Ontario and the third largest in Canada, after Bell Media Radio – the Canadian radio broadcasting division of Bell Media, owned by BCE Inc. (BCE - Free Report) & Newcap Radio. Additionally, on the wireless side, Rogers Communications competes with TELUS Corp. (TU - Free Report) and with Shaw communications Inc. (SJR - Free Report) for television services.
As of Jan 2015, the company owned and operated 52 radio stations – 44 FM (Frequency Modulation) and 8 AM (Amplitude Modulation) – in Alberta, British Colombia, Manitoba, Nova Scotia and Ontario. Currently, the figure has been lowered by one to 51 AM and FM radio stations across Canada, providing a combination of news and entertainment content. The company claims that post the TBCL acquisition, CJDL-FM and CKOT-FM will join Rogers Media's station CHST-FM (102.3 Jack FM) in London, and CKGL (570 NEWS), CHYM-FM (CHYM 96.7) and CIKZ-FM (Country 106.7) in Kitchener.
The Bottom Line
The TBCL radio station buyout seems to be a strategic move on the part of Rogers Communications as it intends to tap into the booming radio market for higher profits and growth. Meanwhile, Rogers Radio views the transaction as an ideal one which should help it strengthen its foothold in Southwest Ontario. Further, the company is on the lookout for opportunities in these already developed radio stations. The company also intends to enhance its services for in these markets. On the other hand, TBCL owners boast about their radio station achievements and expect to maintain the performance under Rogers Communications' ownership.
Rogers Communications currently has a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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