A Rogers storefront is pictured in Toronto on August 15, 2013. THE CANADIAN PRESS/Galit Rodan
November 26, 2013 - 7:31 AM
TORONTO - Shares of Rogers Communications Inc. and BCE Inc. were down slightly Tuesday following a major deal that will affect how hockey-mad Canadians get their NHL fix for years to come.
Toronto-based Rogers will pay $5.2 billion the National Hockey League for broadcast and multimedia rights over a 12-year period beginning with the 2014-15 hockey season.
That will likely freeze out BCE's TSN specialty sports TV channel, which has rights to televise some of the NHL games until the end of this season, but may also raise questions about how much Rogers will pay.
BCE shares slipped less than one per cent to $46.67 in early trading while Rogers stock dipped less than one per cent to $46.65 after the deal was announced before markets opened.
Rogers will use the NHL rights as part of a multi-media strategy that includes the Sportsnet specialty television channels, Rogers Wireless and Rogers Cable.
But Rogers has agreed to resell some of its rights to two of BCE's rivals — the government-owned Canadian Broadcasting Corp. and TVA, a private-sector francophone network in Quebec.
TVA will have French-language rights for multiple platforms, providing its parent company Quebecor Inc. (TSX:QBR.B) with content for cable and wireless systems throughout Quebec.
Quebecor shares were up slightly, rising less than a per cent to $26.63.
CBC will continue to have rights to nationally televised regular season games on Saturday nights and playoff games, a major source of advertising revenue for the crown corporation.
News from © The Canadian Press, 2013