Rogers Cable considering $1.3 billion purchase of MLSE

[Fred Derf Veteran]

Rogers-MLSE deal makes too much sense

STEPHEN BRUNT

Globe and Mail Update

Published Wednesday, Dec. 01, 2010 12:02PM EST

Last updated Wednesday, Dec. 01, 2010 1:16PM EST

...

With all distribution technology pretty much equal these days, with the lines between television and the internet and mobile blurring (and well on the way to being erased) it?s all about what you have to put in that pipe, to differentiate you from other guys, with the other pipe. Sports in that context is a particularly attractive commodity, because its audience (even in a pick and choose culture) is remarkably loyal, tuning in for game after game, season after season, and because live sporting events really are best viewed live ? they are close to PVR-proof, and the perfect product for handhelds.

Rogers understood at least some of that when it bought the Toronto Blue Jays. Even without winning, even without filling the stadium, the franchise had great value in the 162-games of programming the Jays provided for their radio stations and their all-sports television network.

What they understand now is the sports content stranglehold buying a controlling interest in MLSE would provide, at a time when the use of handheld technology is exploding.

Already, in addition to the Jays, Rogers has a significant investment in regional NHL hockey rights, and is a partner with its major rival Bell/CTV in the Olympic broadcast consortium (which owns the 2012 Games, and is the prohibitive favourite to win the rights for the 2014 and 2018 Olympics). By adding the Leafs, the Raptors and Toronto FC to their portfolio, they would become the largest sports media company in North America, control the single most attractive sports brand in the country, and would be in a strong position to challenge CTV and TSN for national NHL broadcast rights, which are scheduled to become available in 2014. Content from those sports properties could be spun out through all of the Rogers platforms.

...

But despite the wild numbers involved, it?s not rash, it?s not romantic, it?s not an owner being sucked in by the love of the game.

This is all dead rational, this is calculated, this is all about the bottom line, this is about giving the people what they want ? and more importantly, that for which they?re willing, directly or indirectly, to pay.

http://www.theglobeandmail.com/sports/stephen-brunt/rogers-mlse-deal-makes-too-much-sense/article1820545/

[Another Canuck]

Right now, only Rogers customers can watch Jays games (on their exclusive "Sportsnet One"). Now they're going to take the Leafs away from everyone too?

**** off Rogers.

This is getting ridiculous at this point. The distribution companies should not be allowed to own our media and content. First Bell buys CTV Globemedia, then Shaw buys Global/Canwest and now Rogers is slowly absorbing all of our sports and their broadcasting rights.

[rajputwarrior]

Right now, only Rogers customers can watch Jays games (on their exclusive "Sportsnet One"). Now they're going to take the Leafs away from everyone too?

**** off Rogers.

This is getting ridiculous at this point. The distribution companies should not be allowed to own our media and content. First Bell buys CTV Globemedia, then Shaw buys Global/Canwest and now Rogers is slowly absorbing all of our sports and their broadcasting rights.

shaw has sportsnet 1 :whistle:

[Denis W. Veteran]

Next Rogers should rename Toronto to Rogersville. ;)

[Fred Derf Veteran]

Michael Grange, Sports columnist, in his blog First Up: The reported price -- $1.3-billion -- for Teacher?s 66-per-cent stake seems cheap for a business that generates just south of $500-million in revenue annually.

According to sources close to MLSE, NFL teams ? a league where teams actually make profits ? are valued at about 3.5 times revenue. On that math a $1.8-billion price tag for the whole operation and $1.3-billion for Teachers stake seems sensible.

But . . . Teachers is not desperate to sell a business that generates steady cash flow, so there will have to be a considerable premium paid by any purchaser. I?d be surprised if that premium doesn?t push the overall value of the company well over $2-billion.

http://www.theglobeandmail.com/report-on-business/the-rogers-leafs-deal-explained/article1820567/

[Fred Derf Veteran]

The latest talk is that a Rogers purchase of MLSE may mean and end to Hockey Night in Canada.

[twist]

you mean no more leafs night in canada? what a shame, guess they'd have to show the other 5 teams for a ****ing change.

thought the teachers pension plan already nixed this whole story anyways.

http://tsn.ca/nhl/story/?id=343995

[Fred Derf Veteran]

you mean no more leafs night in canada? what a shame, guess they'd have to show the other 5 teams for a ****ing change.

thought the teachers pension plan already nixed this whole story anyways.

http://tsn.ca/nhl/story/?id=343995

TSN would love to believe that but the word on the street is that the Teacher's Union would consider accepting upwards of $1.5 billion rather than the initial offer of $1.3 billion. They have to publicly deny their interest to raise the offer.

[Chosen One]

Rogers should die.