Canada’s broadcast regulator has not rubber-stamped CTVglobemedia’s application to take over CHUM Ltd.

CHUM owns MuchMusic and 20 other specialty TV channels, 33 radio stations, five Citytv stations, and 12 other TV stations.

In a decision released this morning, the Canadian Radio-television and Telecommunications Commission approved the $1.7-billion deal.

However, CTVglobemedia must divest itself of the five Citytv stations in Vancouver, Toronto, Calgary, Edmonton, and Winnipeg.

The Straight previously reported that three premiers, including B.C.'s Gordon Campbell, had written to the CRTC urging approval of CTVglobemedia’s application, which included locking up the Citytv stations.

http://www.straight.com/article-84665/parrots-squawk-in-support-of-big-media

CTVglobemedia—which owns the Globe and Mail and 21 CTV-affiliated television stations—had planned to divest itself of seven stations in smaller markets, as well as Sex TV, and its interest in a French specialty music channel.

CTVglobemedia has the option of seeking judicial review, which would require the Federal Court of Appeal to find that the decision was "patently unreasonable". CTVglobemedia could also file an appeal to the federal cabinet.

According to a CRTC news release issued today, the purchase of the Citytv stations would be “inconsistent with the Commission’s common ownership policy”, which states that licensees should not own two stations in the same market.

In the past, the CTRC has made exceptions to that policy, allowing CanWest Global Communications Corp. to retain ownership of television stations in Vancouver and Victoria, which both broadcast into each other’s market.

The CRTC’s ruling clears the way for Rogers Media to buy the Citytv stations, and possibly create a third private English-language television network in Canada.

For more on the background leading up to the CRTC decision, see the Straight’s cover story, “Gorilla media”, in our April 5-12 issue:

http://www.straight.com/article-82806/gorilla-media

In "Gorilla Media", the spokesperson for the Friends of Canadian Broadcasting, Ian Morrison, told the Straight that the CRTC might order CTVglobemedia to divest itself of the Citytv stations and force the media giant to retain the A-channels in smaller markets. Morrison said that this could reduce the threat to local televison in the smaller markets.

In a prescient comment, Morrison said at the time, "Anybody who thinks the CRTC is a pushover is probably wrong."