In May 2001, CBC News provided a backgrounder entitled: “Media Ownership in Canada” by Jennifer Chen and Gary Graves (updated in July 2002). They wrote (paragraphs adjusted):
There are growing concerns that mega-media corporations have too much power over what appears on television, radio and in the newspapers. A fistful of companies own large chunks of the media, leaving smaller companies scrambling for footholds. The word used to express the process of cross-media ownership and company mergers is "convergence." Even with the current merger fever, there are checks and balances in place to ensure that the TV station you watch, the radio station you wake up to and the newspaper you read aren't all controlled by the same company.
The Canadian Radio-television and Telecommunications Commission (CRTC) oversees ownership of media in Canada and imposes regulations meant to ensure fair competition and diversity of ownership. Even so, worries about the potential perils of convergence and the narrowing range of voices have spawned considerable interest in who owns what. […]
G.T.C.Transcontinental Group - Canada's second-largest publisher of community newspapers, the company owns 79 community papers, including 10 dailies, mainly in Quebec. Founded in 1976 by CEO Remi Marcoux, one of the 10 largest commercial printers in North America and Canada's second-largest publisher of magazines and periodicals, G.T.C.Transcontinental Group Ltd. is a Canadian corporation also engaged in interactive marketing and Internet solutions, weekly newspaper publishing and door-to-door distribution of advertising material.
It is the largest publisher of weekly newspapers in Quebec, and the second largest in Canada. In July 2002, the company bought a dozen community newspapers and 32 other publications from CanWest Global in an attempt to become the largest publisher of community newspapers in Canada. The sale of the papers is expected to close in mid-August 2002, pending approval from regulators. Link
In December 2003 a press release announced the acquisition of US Direct Marketing services provider CC3 by Transcontinental, and in March 2004, US CC3 officially changed its name to Transcontinental CC3.
In fact, what "was acquired" was a company mostly owned by Providence Equity. In July 2002, CC3 had announced "that a majority interest in the company was acquired by Providence Partners, a private investment firm specializing in equity investments in media and communications around the world" while "(a) minority interest in the company was purchased by senior members of CC3. Terms of the transaction were not disclosed. Don McKenzie will remain president and CEO of CC3 and will be joined on the company's Board of Directors by Al Dobron and Peter Wilde of Providence Equity Partners." - Source
Although the transaction appears square and above-board, it is not absolutely clear whether Transcontinental acquired CC3/Providence Equity Partners Inc. or - and that's crucial - vice versa. According to various press releases, it would appear that Transcontinental initiated the acquisition, but that does not sound plausible given the acquisition mania of Providence.
Providence Equity Partners Inc. is one of the world's leading private investment firms specializing in equity investments in media and communications companies. The principals of Providence Equity manage funds with over $9 billion in equity commitments and have invested in more than 70 companies operating in over 20 countries since the firm's inception in 1991. Current and previous areas of investment include cable television content and distribution, wireless and wireline telephony, publishing, radio and television broadcasting and other media and communications sectors. Significant investments include VoiceStream Wireless, Warner Music Group, AT&T Canada, eircom plc, Casema, Kabel Deutschland, Language Line, F&W Publications, ProSiebenSat.1, and Bresnan Broadband Holdings. The firm has offices in Providence, New York and London. Visit www.provequity.com for additional information. Source
It is headed by a Jonathan Nelson, aka "The Stealth Mogul". " 'My own mother doesn’t know what I do,' he only half-jokingly told the New York Times (September 14, 2003)". Now Providence Equity Partners Inc. often partners with The Carlyle Group in its acquisitions worldwide. How closely are those two mega-corporations related? Not known.
What is known is that my community paper and my publisac are owned by Transcontinental. If it turns out that in fact Transcontinental is really owned by Providence Equity Partners Inc. (and Carlyle?) then that is truly very very worrisome.
(P.S. This looks like just the tip of the iceberg. More research is required. Anybody here wants to lend a hand and help us learn more, please do so.)
