TORONTO – The chief executive of Quebecor Inc. says his company is still keen to acquire Corus Entertainment Inc. as he urged the CRTC to reject the Toronto-based broadcaster’s own restructuring proposal.
In a letter filed to the telecommunications and broadcasting regulator on Thursday, Quebecor said the future of Corus and its place within Canada’s broadcasting system depends on approval of a takeover by “financially sound acquirers” who are familiar with the sector.
“In our view, Corus’s long-term viability must be achieved through a takeover by strong players with audiovisual industry expertise and a long-term strategic vision, not by creditors converted into shareholders whose logic is driven primarily by short-term financial recovery, with no genuine contribution to the cultural sphere,” said Quebecor president and CEO Pierre Karl Péladeau in an emailed statement.
But Corus, which on Friday reported its financial losses worsened in its latest quarter compared with a year ago, has snubbed Quebecor’s offers thus far, according to Péladeau.
The CRTC is currently reviewing a proposed recapitalization plan from Corus that would see a change in ownership shifting effective control of all licensed programming services operated by the television and radio broadcaster and its subsidiaries.
Under the proposal, some of Corus’ lenders would forgive approximately $500 million in debt in exchange for 99 per cent ownership of a newly created parent corporation, dubbed NewCo, which would wholly own Corus and its services. Existing Corus shareholders would be expected to swap their holdings for shares that together would represent the remaining one per cent of the new company.
In March, Corus received an order from the Ontario Superior Court to proceed with the recapitalization plan after a shareholder vote in January failed to pass.
However, it still awaits regulatory approval. The CRTC launched a consultation into the deal last month, and parties had until Thursday to submit comments.
On Friday, Corus CEO John Gossling said the proposal is making its way through the CRTC approval process and the company did not yet have any indication of timing to close. He did not address Quebecor’s submission on the matter while speaking on a conference call to discuss Corus’ latest earnings.
Corus reported a net loss attributable to shareholders of $36.5 million in its third quarter as the company behind Global Television saw its revenue fall 16 per cent compared with a year ago.
The broadcaster said the loss amounted to 18 cents per diluted share for the quarter ended May 31. The result compared with a loss of $7.3 million or four cents per diluted share for the same quarter last year.
Gossling said the results reflected significant savings from cost management initiatives, which helped partially offset continued pressure on linear television advertising demand.
Corus has indicated to the CRTC that its proposed recapitalization deal is necessary to address its high debt load and improve its financial stability so it can continue to operate.
Its board has said the deal represents the “best viable option to secure Corus’ future while preserving the most shareholder value.” The company has said it will lead to annual cash interest savings of up to $40 million and preserve Corus “in its vital role as a leading independent Canadian broadcaster.”
But Péladeau said that approach risks creating a situation in which rival Bell Canada “would monopolize the English-language media landscape.”
“Corus’ assets represent an essential national infrastructure for Canada and its culture,” he said.
“It is therefore imperative to preserve this competition and to offer Canadians a diversity of voices and entertainment content.”
He said Quebecor has built one of Canada’s most successful media-telecom integration models, pointing to its 2023 acquisition of Freedom Mobile, in which it has since invested heavily to expand across Canada.
“We have clearly demonstrated that we have the expertise and the track record needed to turn a company around and create an environment conducive to its growth,” Péladeau said.
He added that combining production facilities with Corus would allow Quebecor to create more high-quality Canadian content.
“Quebecor would furthermore create a genuine national alternative for Canadian advertisers and clients, through its full range of platforms and integrated sales forces, positioning itself as Canada’s second major media player.”
Conditional support from union
Earlier this week, a group of minority shareholders also called on the CRTC to reject Corus’ proposed deal, saying it risks creating financial incentives for cost-cutting rather than maintaining local service.
The group raised particular concern about the potential role of Canso Investment Counsel Ltd., which is expected to be NewCo’s largest shareholder. As an investment fund rather than a media operator, Canso lacks the experience needed and could be motivated to shut down local stations or reduce staff, those shareholders warned.
In a separate submission, Canada’s largest private sector union said Thursday the CRTC should approve Corus’ application but set conditions to protect jobs and local programming.
Unifor, which represents 5,000 workers in the broadcast and film industries including some at Corus, said the CRTC’s green light should be conditional upon the company committing not to close any media outlets nor implement layoffs, operational downsizing, or other reductions in head count.
“Simply put, the best way to ensure that Canadians have access to local news is to require the employment of trained, professional journalists and media workers in local markets,” said Unifor media director Randy Kitt.
On an adjusted basis, Corus said it lost 15 cents per share in its latest quarter compared with an adjusted profit of six cents per share a year earlier.
Revenue totalled $249.4 million, down from $297.8 million a year earlier. Television revenue amounted to $229.5 million, down from $274.5 million a year ago, while radio revenue totalled $19.9 million, down from $23.3 million.
This report by The Canadian Press was first published June 26, 2026.
Companies in this story: (TSX:CJR.B; TSX:QBR.B)
