Oct
5
Bell Canada Enterprises Plan to Add Astral Media to Lineup
Posted by: kylechan | October 5, 2012 | Leave a Comment
Bell President and CEO George Cope (left) alongside
Astral President and CEO Ian Greenberg (right)
in a news conference in march 2012
Recent news speculate that Bell Canada Enterprises (BCE.TO) are in the final stages of coming to terms with Montreal based media giant Astral Media Inc. for a reported $3.38 billion acquisition. The main deciding factor for Bell’s decision was their perception of Time Value of Money. With Astral’s net income nearing the $200 million mark as of 2010, Bell has the potential to gain large returns within the next 15 years. One of the opportunities that arise to Bell is the ability to license certain programs owned by Astral, such as Disney, Family, or Teletoon. Because of this, the Canadian Radio-television and Telecommunications Commission has conducted an investigation to make sure Bell’s intentions are not detrimental to the competition. Personally, I believe that without the involvement of the government, the most ideal decision would be to hoard the content for a certain amount of time in order to gain a Differentiation Strategy and attract consumers, but eventually license at a slightly higher price in order to obtain a Cost Leadership Strategy and keep consumers from switching to a competitor.
What would you do if you were in the shoes of Bell’s CEO
Leave a comment below!
Ladurantaye, Steve. “Rogers Adds to Chorus against BCE-Astral Deal.”Globeandmail.com. The Globe and Mail, 12 Sept. 2012. Web. 05 Oct. 2012. <http://www.theglobeandmail.com/report-on-business/bce-will-hoard-content-after-astral-buy-rogers-tells-crtc/article4538940/>.