Rogers Snaps Up Score Media’s TV Business

by Gaurav Kheterpal on August 27, 2012

Rogers is going through an interesting period. On one hand, its performance in the wireless segment remains a mixed bag. On the other, the company has decided that inorganic growth is the best way to combat the situation.

The company’s moves to join the global M2M alliance and the partnership with SAP are obvious indications that Rogers is now looking for alternate revenue lines to compensate for the losses in the wireless segment.

In another strategic move, Rogers on Friday announced that is’ acquiring Score Media Inc. for $167-million, thereby grabbing control of Canada’s third and smallest all-sports english-language television network.

The deal does not include the digital media business of Score Media, which will be spun-out to Score Media’s shareholders as a new corporation to be formed under the Canada Business Corporations Act.

This is another boost for Rogers’ foray into sports entertainment after the CRTC last week approved the MLSE sale deal thereby paving way for the $1.32-billion acquisition of MLSE by BCE and Rogers.

Score Media’s TV business is comprises of theScore Television Network, closed captioning service provider Voice2Visual, and theScore Fighting Series (SFS). The company is though, best known for its mobile applications  – ScoreMobile, ScoreMobileFC and Sportstap, which fall under the digital media business and will be spun out as a new legal entity.

It’s believed that Score Media has been trying to sell for a year or more.  The company reported $12.7-million in revenue in the latest quarter – a narrow loss of 2 cents a share. The deal may prove to be a shot in the arm for Rogers’ Sportsnet channels to compete against BCE’s TSN. It’s also a strategic fit considering the company’s decision to make as much content as possible available to viewers on screens of all sizes.

“We continue to pursue opportunities to engage, expand and enhance the experience for sports fans. Rogers Media is on a growth trajectory and this builds on our momentum of delivering world-class sports content anywhere, anytime, on any platform,” said Keith Pelley, President, Rogers Media. “theScore is a tremendous sports service that offers a distinct flavour of premium, niche programming that fits squarely within our strategy of delivering highly sought-after content to Canadians.”

Most analysts are surprised at the decision to exclude the company’s digital media assets including Score’s mobile apps, which are expected to pull in 2.2 billion page views this year.

It would be interesting to see if and when the deal would receive the regulatory approvals, especially in wake of the recent outcry against the Bell-Astral merger.

Did you like this post? TheTelecomBlog.com publishes daily news, editorial, thoughts, and controversial opinion – you can subscribe by: RSS (click here), or email (click here).

Written by: Gaurav Kheterpal. www.digitcom.ca. Follow TheTelecomBlog.comby:RSS,TwitterFacebook, or YouTube.

 

 

{ 1 trackback }

Rogers Says Data Demand Fuelling Wireless Growth — TheTelecomBlog.com
December 6, 2012 at 8:05 am

{ 0 comments… add one now }

Previous post:

Next post: