CanWest MediaWorks Inc, Canada's largest media company and more recently winners of two FM licences in the UK, said they have been unable to succeed in Canada's radio business and said it will pursue other opportunities.
The sale of their two radio stations is subject to regulatory approval and buyers Corus Entertainment are expected to pay 15 millon dollers.
The two stations in question are 99.1 Cool FM in Winnipeg, Manitoba and 91.5 The Beat FM in Kitchener, Ontario and the sale, for an aggregate cash price of approximately $15 million, is subject to certain customary price adjustments based upon the stations' financial position at the completion date. Completion of the transaction is conditional upon the purchaser obtaining CRTC and any other necessary regulatory approvals.
Peter Viner, President and Chief Executive Officer of the Company's Canadian operations, noted, "Despite considerable efforts, the Company has not established, either through the award of additional radio licences by the CRTC or by acquisition, a sufficient presence in the Canadian radio market to achieve the economies of scale necessary for success in this highly competitive business. In light of that, the Company determined that its capital would be better deployed in higher growth opportunities and in supporting its core business requirements."
CanWest MediaWorks Inc. is a wholly-owned subsidiary of CanWest Global Communications Corp. In addition to owning the Global Television Network, CanWest is Canada's largest publisher of daily newspapers, and also owns, operates and/or holds substantial interests in conventional television, out-of-home advertising, specialty cable channels, Web sites and radio networks in Canada, New Zealand, Australia, Singapore, Indonesia, Malaysia, Turkey, the United States and the United Kingdom.
CanWest have just launched Original 106 in the Solent region, and last month won the local radio licence for Bristol.