2004-06-27, 01:08 PM
I have heard the rumour resurface that Rogers may be about to move to buy out all of Cogeco's Ontario territory. I know this has been an on and off story (or non-story if you prefer) over the last couple of years, but I have come accross a couple of people who seem to think they know something is brewing. One said before the end of Q3 and the other said by the end of the year. These sources are not what I would consider "insiders" but I found it an odd coincidence that I heard it from two sources (one from each company) within a few days.
Anyone else heard similar, or is this a non issue?
2004-06-27, 01:37 PM
I think Rogers is more focused on rolling out their telephony service. I don't see any pressing reason why they would want to buy Cogeco right now.
2004-06-27, 03:23 PM
Controlling interest in Cogeco Inc of which Cogeco Cable Canada Inc. is a subsidiary still falls within the hands of the Audet family (I believe they have a 60% or so share in the company)...
And based on what they are rolling out and whatnot, usually if your going to sell something off you wouldn't upgrade it (Ie. HDTV/All Digital)...you'd let it deteriorate and let whoever is going to buy it fix that parts up, and especially to sell off what is now a Money making part of their business (The TV/Radio arm lost money in these past few quarters) makes no sense...
If they were going to sell...they'd sell it all, and I don't think Rogers wants any more TV/Radio stations right now...especially in Quebec where they have a near zero presence.
I pulled all this information from the Annual reports since it peaked my interest :)...
It would have made sense when they were losing money on it back in 99/2000...but probably not now since it seems to be turning a profit....
Also I don't believe the CRTC would approve such a merger....placing the hands of everyone under 1 big umbrella doesn't seem to be the CRTCs style :)
2004-06-27, 06:14 PM
Interesting stuff. One thing I did get from talking to these people (if I understood correctly) was that Rogers is only interested in aquiring the Cogeco properties in Ontario, not the entire company.
2004-06-27, 08:12 PM
Cogeco picked up several Rogers areas in S. Ontario about a decade ago.
Not sure why they would reverse this.
I could see Rogers wanting to swap their Atlantic holdings for the Cogeco Ontario holdings.