ARCHIVED - Decision CRTC 98-530
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Ottawa, 18 December 1998
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Decision CRTC 98-530
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Blackburn Group Incorporated, on behalf of Sarnia Broadcasters (1993) Ltd.
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Sarnia, Ontario - 199805636
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Transfer of control
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1. The Commission approves the application by Blackburn Group Incorporated (Blackburn), on behalf of Sarnia Broadcasters (1993) Ltd. (Sarnia Broadcasters), licensee of CHOK Sarnia, for authority to change the effective control of Sarnia Broadcasters through the transfer of all of the issued and outstanding shares held by Penway Radio Holdings Ltd. and Wayne W. Steele to Blackburn.
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2. Blackburn is ultimately controlled by the trusts of the children of Martha Blackburn.
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3. Blackburn currently owns and operates Sarnia's two other commercial radio stations, namely CKTY and CFGX-FM. As a result of the transaction approved herein, Blackburn will own all three commercial radio stations in the Sarnia market. The Commission notes that this application falls within the scope of the new common ownership policy established in Public Notice CRTC 1998-41 entitled Commercial Radio Policy 1998. According to this policy, in markets with less than eight commercial stations operating in a given language, a licensee may own or control as many as three stations operating in that language, with a maximum of two stations on the AM or FM band.
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4. The purchase price for the shares is $902,600, subject to adjustments. Based on the evidence filed with the application, the Commission has no concerns with respect to the availability or the adequacy of the required financing.
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5. Consistent with the requirements of the benefits test outlined in Public Notice CRTC 1998-41, the benefits offered represent the required minimum direct financial contribution to Canadian talent development of 6% ($54,175) of the transaction. This includes:
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· 3% ($27,075) to be allocated to the Canadian Music Marketing and Promotion Fund, which is to be created;
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· 2% ($18,050) as a contribution to FACTOR; and
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· 1% ($9,050) to local talent development initiatives involving the Lambton County Music Festival and The Centre for Entertainment and the Environment.
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9. The 3% contribution which is to be allocated to the Canadian Music Marketing and Promotion Fund must be directed to the Canadian Association of Broadcasters who will hold all contributions in trust pending the creation of this fund. These commitments are over and above CHOK's existing commitments and conditions of licence.
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10. Blackburn also made a commitment to maintain diversity in news coverage on each of the three stations. Specifically, Blackburn will employ a separate senior news manager for each station who will be responsible for editorial comment and news content. Accordingly, the Commission is satisfied that approval of this application will not result in any reduction in the diversity of news coverage available in the Sarnia radio market.
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11. The Commission acknowledges the six interventions submitted in support of this application.
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Secretary General
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This decision is to be appended to the licence.
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This document is available in alternative format upon request, and may also be viewed at the following Internet site: www.crtc.gc.ca
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