2219...The First Thing That Goes In A Revolution

Is the radio stations.

That is why this story from Taylor on Radio-Info is important to Canucks:

After shutting down two Montreal AMs, Corus now sells its four FMs there plus seven more in Quebec.

Three months ago, Corus turned off the lights at “non-viable” 50-kw AMs “Info690” CINF and CINW/940. Now for $80 million Canadian ($78.8 million U.S.), it’s selling off its FMs in Montréal and almost everything else in Quebec to competitor COGECO. The Montreal Gazette says that with much smaller margins coming out of Quebec than its other operations – just 11% in the most recent year – Corus simply couldn’t “decode Quebec’s distinct radio market.” Corus President/CEO John Cassaday says exiting Quebec represents a “strategic decision” to focus on Corus’ radio business elsewhere, such as Toronto (classic rock “Q107” CILQ) and in Western Canadian markets like Calgary and Winnipeg. Also on Corus television. But the size of the Quebec holdings of Shaw family-controlled Corus makes this a very big deal in terms of Canadian radio, which has undergone plenty of shifts in the last four or five years. (Astral bought out the Slaight family’s Standard Radio in 2007, for instance, and Astral is Corus’ biggest rival in Quebec.)

Quebec's COGECO becomes a formidable rival to Astral Media.

Buying the 11 Corus stations dramatically expands the size of COGECO, because it’s adding stations that did about $66 million (Canadian) in revenue last year. COGECO, run by president/CEO Louis Audet, is acquiring French top 40 CKOI (96.1), Francophone news/talk “FM 98.5” CHMP, English-language sports CKAC (98.5) and soft AC “Q92.5” CFQR. Plus radio assets in Gatineau, Quebec City, Sherbrooke, Trois-Rivieres, Saint-Jerome and Montmagny. There won’t be an LMA prior to closing (it's not the Canadian way). Corus had just recently announced it intends to sell Quebec station CKRS, Saguenay (98.3), and that’s not part of the COGECO package. Deal-wise, CIBC World Markets advised Corus. Its stock trades on the Toronto exchange as "CJR.B" and on the NYSE at "CJR." The stock price was basically unchanged on the New York Stock Exchange Friday, where it typically trades about 25,000 shares a day. (“CJR” gained a penny to $20.33.) It dropped a penny on the Toronto Exchange, to $20.45.

My question is, will Cogeco have the foresight to light up the 50 kw blowtorches at 690 and 940 again and make it work?

And if they don't, will they sell them to me for a dollar?

WFDS