CRTC approves Sirius XM Canada Inc. transaction - Would result in investments of $29 million in Canadian music industry
April 26, 2017 – Ottawa-Gatineau – Canadian Radio-television and Telecommunications Commission (CRTC)
The Canadian Radio-television and Telecommunications Commission (CRTC) today ensured that a transaction involving Sirius XM Canada will benefit Canadians and Canadian music artists for years to come.
The CRTC is directing Sirius XM Canada to allocate nearly $29 million over the next seven years to funds that promote Canadian musical talent, such as FACTOR and Musicaction.
The CRTC considers the transaction to be in the public interest of Canadians, as it will continue to ensure the sustainability of the satellite radio service, while supporting the Canadian broadcasting system investments through tangible benefits.
The CRTC found that there has been a change of effective control, and the value of the transaction is $479 million.
“With regards to musical talent, it is clear Canada has a lot to be proud of, and we must continue to support and encourage our artists in the ever-changing and competitive music industry. The CRTC has put measures in place to ensure continued support for Canadian artists, and it is great to see how it is helping them achieve international recognition. As a direct result of the CRTC’s policies, $269 million has been contributed between 2010-2015 to support the development and promotion of Canadian music, as well as musical creators and artists.”
- Jean-Pierre Blais, CRTC Chairman and CEO.
As a result of the transaction, the parent company of Sirius XM Canada would cease to be publicly traded and would become a private corporation.
Sirius XM Canada is the sole provider of satellite radio services, with approximately 2.7 million total subscribers across Canada, with broadcasts in both official languages.
Under the CRTC’s policies, tangible benefits, which support the creation, marketing and promotion of Canadian music, may be imposed on transactions resulting in a change of effective control of broadcasting undertakings.
Should Sirius XM Canada proceed with the transaction, nearly $24 million will be allocated over the next seven years to support French and English-language initiatives through: Radio Starmaker Fund, Fonds Radiostar, FACTOR, Musicaction and the Community Radio Fund of Canada.
Additionally, a discretionary amount, totalling 1% ($4.79 million) of the value of the transaction must be made to the Broadcast Participation Fund, or, alternatively, Sirius XM Canada must submit a proposal for the Commission’s review.
The Canadian Broadcasting Corporation which is currently one of three major Canadian shareholders will divest its financial stake as a result of the transaction.
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