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Western International Communications

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WIC Western International Communications Ltd.
Company typePrivate
IndustryMedia
Founded1982;42 years ago(1982)
Defunct2000;24 years ago(2000)
FateAssets sold toCanwest Global(laterShaw Media),Shaw Communications,andCorus Entertainment
SuccessorCorus Entertainment(most media assets)
Rogers Communications(satellite distribution assets)
ProductsSpecialty channels,broadcasting,satellitedistribution

WIC Western International Communications Ltd.[a](orWIC) was a Canadian media company that operated from 1982 to 2000, with operations includingbroadcastandspecialtytelevision,radio,andsatellitedistribution via a majority interest inCanadian Satellite Communications(or Cancom).

The company itself was acquired byCanWest Global Communications,which kept most of WIC's broadcast television stations and a variety of related television production assets. As a result of a takeover battle leading up to the acquisition,Shaw Communicationsassumed WIC's interest in Cancom, while a separate company owned by the same Shaw family,Corus Entertainment,acquired various radio stations andspecialty services.A handful of assets would be acquired by other companies for competitive reasons.

With the sale of Canwest's broadcasting assets to Shaw a decade later, the Shaw family at that point controlled almost all of the assets of the former WIC – through either Shaw or Corus – the sole exceptions being a handful of resold local TV stations and specialty channel assets, including interests inFamily Channel(currently owned byWildBrain) and ROBTv (nowBNN Bloomberg,owned byBell Media). Corus acquired Shaw Media in 2016, giving Corus the former media assets of WIC, such as its former local television, specialty services, and radio groups.[2]Shaw Communications, including the former Cancom, was acquired byRogers Communicationsin 2023.[3]

History

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Frank GriffithsestablishedWestern Broadcasting Company Ltd.in the late 1950s to hold his various broadcasting assets in British Columbia, including radio stationCKNWand a majority interest inBCTV,at the time Vancouver'sCTVaffiliate, and in 1963 added Victoria'sCHEK,which became BCTV's sister station. WBC was publicly traded for a time but was later reacquired by Griffiths's family.

In 1982, the Griffiths' media assets were again floated on the public markets in a restructured form via WIC. The Griffiths retained Western Broadcasting, which in turn held all of WIC's Class A voting shares; the Class B shares were sold to the public. Class B shares did not generally provide voting rights, but would be converted to voting shares should a majority of Class A shares change hands, a so-calledcoat-tailprovision.

Over time, WIC would acquire various broadcasting assets from other companies, includingSelkirk Communications– the other major shareholder of BCTV, and also the owner of independent stationsCHCH-TVHamilton and CFAC-TV (nowCICT-TV) Calgary – as well asCharles Allard's companyAllarcom,which had launchedCITV-TVEdmonton and pay television serviceSuperchannel.Its final major acquisition was Montreal'sCFCF-TV,which it bought in 1997.

Takeover battle

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In 1997, wanting to exit the broadcasting business, the Griffiths agreed to sell WIC toShaw Communications.Initially, they sold 49.98% of their Class A shares to Shaw, 49.98% to the Allard family, and 0.04% to CanWest, in order to evade the coat-tail provision while Shaw completed a takeover bid for the non-voting shares.

However, CanWest also coveted WIC, primarily for its independent television stations in Alberta, the largest remaining hole in the company'sGlobal Television Network,Canada's third English-language over-the-air television network. CanWest also offered to buy the Class B shares and filed a lawsuit claiming that the division of Class A shares constituted a change of control.

The lawsuit eventually stalled, and CanWest and Shaw each ended garnered over 40% of Class B shares. The negotiations between Shaw and CanWest continued until 1999, when the two parties, as well asCorus Entertainment,agreed to split the assets.[4][b]

Under the agreement, CanWest was to acquire WIC's broadcast television division, various production assets, as well as its interests inReport on Business Television.However, inMontreal,where CanWest chose to keep its existing Global stationCKMI,the company was required to divest CFCF, and eventually sold it to CTV. Montreal'sanglophonepopulation was too small to allow one company to own both of that city's anglophone stations. CanWest also retained WIC's interest inReport on Business Television;it was subsequently sold to rivalBell Globemediawhen that company acquiredThe Globe and Mail,which owned the remainder.

Shaw would acquire WIC's interests inCanadian Satellite Communications,which was in the process of merging with Shaw-controlled direct-to-home satellite providerStar Choice,meaning that Shaw would obtain a larger majority interest in the combined company. Cancom would be privatized by Shaw a few years later.

Meanwhile, Corus was to acquire WIC's radio, specialty, and premium television assets. The CRTC approved the sale of the radio stations, MovieMax, SuperChannel, and WIC'svideo on demandservices to Corus, but required WIC's shares of The Family Channel and Teletoon be sold to a new buyer.Astral Mediaacquired those shares in 2001.[c]

Effects of WIC breakup

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CanWest's acquisition of WIC's television stations finally brought the Global network's service toAlberta,where theCanadian Radio-television and Telecommunications Commissionhad repeatedly denied the company's applications to open new stations. An earlier application by Global in 1997 had been turned down in favour ofCraig Media'sA-Channelsystem. However, the WIC stations there were already purchasing broadcast rights to some of Global's programming.

InVancouverandVictoria,Canwest's acquisition of CHAN set off one of the largestsingle-market network association shakeupsinNorth Americantelevision history. There was already a Globalowned-and-operated stationin the Vancouver market,CKVU,but Canwest decided to sell that station and keep CHAN instead.

As a result, on September 1, 2001, the Global brand and programming moved from CKVU to CHAN, the CTV association moved from CHAN to CIVT, and CKVU was purchased byCHUM Limited,adopting theCitytvbrand the following year. CHEK also changed its association, from CTV to Global's newCHsystem; aNewNetstation in Victoria,CIVI,as well as religious stationCHNU-TV,also launched around the same time.

CHCH and CJNT's signals also overlapped with existing Global stations; these two stations were integrated with CHEK into the CH system. CKRD disaffiliated from the CBC in September, 2005, becoming CHCA, the fourth CH station.[d]CHBC's similar disaffiliation was approved by the CRTC on February 28, 2005, and disaffiliated on February 27, 2006, to join the CH system.[e]Montrealwas largely unaffected by the breakup of WIC. The breakup did, however, result in theCBC,CTV and Global affiliates becoming network owned-and-operated stations, as Montreal was the largest television market in which CTV did not own its affiliate. Moreover, CJNT, which had been sister station to CFCF, became sister station to CKMI.

Global did not have a true national newscast before it acquired WIC, although it airedFirst NationalinOntario,Manitobaand, later,Quebec.On acquiring WIC, Global briefly replacedFirst NationalwithCanada Tonighton stations carrying that program, and premiered its successor,Global National,on September 3, 2001.

Later ramifications

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While the acquisition was important to fill in some of the gaps of the Global network in western Canada, it eventually proved to be something of aPyrrhic victory.Canwest fell intobankruptcy protectionin 2009 under the weight of debt from various acquisitions including WIC, but more critically the larger purchases of theSouthamnewspaper chain and the broadcasting assets ofAlliance Atlantis.In the process, it closed the CH / E! system, leading in turn to the sale of three of the WIC stations Canwest had acquired in 2000 (CHCH, CJNT, and CHEK), the conversion of another to a Global station (CHBC), and the closure of one other (CHCA).

In 2010, Shaw announced a deal to buy the entirety of Canwest's broadcasting division, which would place most of the former WIC assets under the control of the Shaw family, through either Shaw or Corus.[5]The deal was completed that October, with the Canwest properties now being part ofShaw Media.

On January 13, 2016, the aforementioned Corus Entertainment, which remained under the control of the Shaw family and retained all of the former WIC radio properties, announced that it would acquire Shaw Media (including much of WIC's former group of local television stations) for $2.65 billion. The sale, which was intended to help fund Shaw Communications' purchase ofWind Mobile,required shareholder and CRTC approval, but closed less than three months later, on April 1, 2016.[2][6]At the time Corus also owned WIC's former pay television properties (by then known asMovie CentralandEncore Avenue), but the company had announced in late 2015 it would sell those services' subscriber base and programming rights toBell Media's The Movie Network, which took effect on March 1, 2016 (TMN was later renamed toCraveafter astreaming service of the same name).

Assets

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Television stations

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WIC was primarily an ownership group, not a television network. Some WIC stations were network affiliates ofCBCorCTV,while others operated as independent stations, although some of these stations also had program supply agreements with CanWest. At the same time however, WIC produced or purchased Canadian rights to enough programs to fill the schedule of CHCH (which had no third-party programming source), and many of these programs, including the newscastCanada Tonightand foreign programming such asTouched by an Angel,aired on other WIC stations. The WIC library of programming would ultimately form the initial basis of Canwest's ill-fated second broadcast service,CH (later E!).

At the time of its sale to CanWest, WIC owned the following stations. The year WIC first acquired control of each station, and the programming carried by each station immediately prior to the breakup of the company, is also noted.

City Station Year acquired Primary programming source Other programming sources Current status
Calgary CICT 1989 Global[f] WIC Global O&O
Edmonton CITV 1991 Global[f] WIC Global O&O
Hamilton CHCH 1990 Independent (WIC programs only) N/A Independent station owned byChannel Zero
Lethbridge CISA 1989 Global[f] WIC Global O&O
Kelowna CHBC 1989[g] CBC Global / WIC Global O&O
Montreal CFCF 1997 CTV WIC CTV O&O
Montreal CJNT 1999 Independent multicultural N/A CitytvO&O
Red Deer CKRD 1991 CBC Global / WIC (programs not carried on CICT/CITV) Later CHCA; closed in 2009 following shutdown ofCH / E!
Vancouver CHAN 1982[g] CTV WIC Global O&O
Victoria CHEK 1982[g] CTV (timeshifted) WIC (different programs from those on CHAN) Independent station owned by CHEK Media Group

WIC's CTV affiliates, CHAN and CHEK, as well as CFCF (even before its acquisition by WIC), had a hostile relationship with the network, due to these stations' desire to take a greater role in Canadian program production for the network. This relationship deteriorated even further in 1997, when rivalBaton Broadcastingbecame the sole corporate owner of CTV, and opened its own independent station,CIVT,in Vancouver. Baton, which owned the national rights to many programs aired in Vancouver on CHAN or CHEK, was able to move these programs, now being advertised as CTV programs outside British Columbia, to CIVT. However, the CTV network, which supplied 40 hours of programming each week, was still bound by affiliation agreements with CHAN and CHEK; these agreements did not end untilSeptember 2001.

Unlike many other ownership groups, which during the 1990s tended to brand their stations generically under a network / system brand (sometimes combined with the stationcall sign), WIC tended to favour regionally based station branding. For example, under WIC's ownership, CHAN used the brandBCTV,with CICT being known asCalgary 7and CKRD Red Deer asRDTV.WIC also changed CHCH's branding toOnTVin 1997, when the station added several rebroadcast transmitters throughout Ontario.

Specialty and premium television

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Radio stations

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At the time of its sale to CanWest, Western International Communications owned 12 radio stations. These were acquired byCorus Entertainment.

Footnotes

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  1. ^The company's full legal name included, seeminglyredundantly,both the "WIC" acronym and its expanded form.[1]
  2. ^Corus, consisting of Shaw's former broadcasting division, had been spun off from Shaw earlier in the year, in the process receiving some of Shaw's interest in WIC.
  3. ^Corus already held a minority interest in Teletoon, which - following subsequent acquisitions - was run as a 50/50 joint venture with Astral. Teletoon became wholly owned by Corus in 2013, due toAstral Media's takeover byBell Media.
  4. ^CHCA would later go off the air on August 31, 2009
  5. ^Although CHBC did not use the CH brand on-air, but rather its call letters, as it had done throughout its existence, until September 7, 2007, when it began using theE!brand for all programs outside of local news and regional programming.
  6. ^abcAlthough the station in question was nominally independent, the vast majority of its primetime programming was supplied by Canwest.
  7. ^abcWIC was already a partial owner of these stations, but acquired the remainder of each station, specifically 50% of CHBC and 41% of each of CHAN and CHEK, fromSelkirk Communications(viaMaclean-Hunter) in 1989.

References

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  1. ^"SHAW COMMUNICATIONS BUYS WIC WESTERN INTERNATIONAL".The New York Times.April 18, 1998.RetrievedJune 26,2020.
  2. ^ab"Corus Entertainment acquires Shaw Media for $2.65-billion".The Globe and Mail.Retrieved13 January2016.
  3. ^"Rogers closes its historic $20B acquisition of Shaw".BNNBloomberg.ca.April 3, 2023.RetrievedApril 3,2023.
  4. ^Susan Gittins,CTV: The Television Wars,Toronto: Stoddart Publishing, 1999,ISBN0-7737-3125-3
  5. ^"Torstar confirms Canwest bid: Shaw wins Goldman support to buy TV assets".CBC News.2010-05-03.Retrieved2010-05-10.
  6. ^"Corus Entertainment Completes Acquisition of Shaw Media".Corus Entertainment.RetrievedApril 1,2016.