CHCH's future up in the air
Sale of station 'worst-case scenario'
February 06, 2009
Daniel Nolan
The Hamilton Spectator
Canwest Global has announced it is exploring the idea of selling CHCH News and that it is abandoning operating a second commercial TV network in Canada.
The announcements came yesterday afternoon, just days after bankers pulled back the debt-laden company's borrowing power. It also comes after Canwest head Leonard Asper has stated the amount of local programming produced by CHCH News cannot be sustained.
Staff at CHCH News, which has been rocked by layoffs and program cuts, were called to a meeting at 4:30 p.m. to hear the news from general manager Patrick O'Hara.
Canwest said it is exploring strategic options for five of its "conventional stations" including CHCH News. The other stations are CJNT-TV in Montreal, CHCA-TV in Red Deer, CHBC-TV in Kelowna and CHEK-TV in Victoria. The stations are part of the E! network.
RBC Capital Markets has been retained to assist in the process and Canwest said the sale of the stations is one of several options.
O'Hara reportedly told staff the review will take six to eight weeks. He also said closing the station was "a worst-case scenario."
While Canwest said a possible sale of the stations could help boost its sunken stock price, analysts say it's unlikely the company will find a buyer, especially in the current recessionary environment.
Canwest has a debt of about $3.6 billion.
Torstar Corp., which owns The Hamilton Spectator and The Toronto Star, once coveted a TV station. It, however, announced yesterday its Transit Television Network in the United States had voluntarily filed for bankruptcy protection. Transit TV operates digital ad technology on television screens in transit systems in such places as Los Angeles, Chicago and Atlanta.
Canwest CEO Leonard Asper said such stations as CHCH are "not core to our television operations going forward."
He said the firm will focus on its specialty channels and digital media and said a second TV network "is no longer key to the long-term success of our broadcasting business."
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Changing times at CHCH
* Canwest Global announced in November 2008 it was cutting 560 jobs across the country, including 14 jobs at CHCH in an effort to save $61 million.
* Four local shows were cancelled, local content was reduced and the Halton news bureau in Oakville was closed. Local content fell to 36.5 hours, 30 minutes above the station's CRTC licence.
* The noon newscast was chopped from 60 minutes to 30.
* Long-time anchor Connie Smith wrapped up her career at the end of November after 32 years at the station. She had been a news anchor since 1988.
* Colleague and co-anchor Dan McLean signed off one last time roughly two weeks later after being at the station since 1971. He had been a news anchor for 28 years.
* CH Morning Live, the noon news and Live at 5:30 were all put on hiatus for a week during the December holiday season.
* Canwest cancelled its morning show on its Toronto station and is now broadcasting CH Morning Live in its place. Jobs were chopped in Toronto with the loss of its morning show.