Two city FM stations part of large radio deal

Montreal-based Stingray Digital Group Inc. has purchased all of Newfoundland Capital Corp. Ltd.’s 101 radio stations across Canada in a deal valued at around $506 million. The deal, which includes Ottawa FM radio stations Live 88.5 and The New Hot 89.9, will also see 800 employees transferred from Newfoundland Capital to Stingray, bringing the company’s head count to around 1,200. The acquisition marks the company’s first real foray into traditional media. The company is best known for its radio streaming services, most notably through TV providers such as Rogers Communications and Bell Canada’s home TV. It also has a division that sells background music for businesses to play in public spaces. Through its TV and online presence the company claims to reach as many as 400 million subscribers in 156 countries around the world. The addition of the Newfoundland Capital stations, which include popular properties in provinces across Canada, including Capital 96.3 FM in Edmonton and Z 95.3 FM in Vancouver, gives the company a national reach and radio licences, allowing it broadcast over the air. “The transaction closed today signals the creation of Canada’s largest public independent media company, and of that I could not be more proud,” Eric Boyko, president, co-founder and chief executive at Stingray, said Friday. “Through the integration of (Newfoundland Capital) assets and extraordinary talent, both on and off the air, we are poised to take Stingray to new levels of growth and success. Radio is a medium that has personal resonance with each of us, whether for music discovery or local news, and I am confident in its future as it evolves within the digital landscape.” The deal for Newfoundland Capital’s assets has been structured as a cash and stock purchase. Stingray will offer 0.15371 Stingray subordinate voting shares and $13.17 in cash for each existing share of Newfoundland Capital.