As part of the conditions to the approval, Bell and Rogers have to invest $7.5 million over the next seven years on new sports themed programming by independent Canadian producers. Essentially, a drop in the bucket for the billion dollar Canadian media titans.
MLSE, and now Rogers and Bell, own the Toronto Maple Leafs, the Toronto Raptors, the Toronto FC, the Toronto Marlies, Leafs TV, Gol TV and NBA TV Canada, as well as two other services that have not yet launched. As a whole, MLSE will be a cash-cow for its new owners, and an excellent source of new incomes for future dividend increases.
Since Rogers already owns the Toronto Blue Jays, the Rogers Centre, and Sportsnet, and Bell owns CTV and TSN, as well as a minority ownership stake in the Montreal Canadiens, the two companies are cementing a dominating position in Canadian media and entertainment.
Both Bell and Rogers already support healthy dividends and solid business franchises. The new acquisition bodes well for Intelligent Investors if they are looking for reliable income and cash-flow generation.
Full Disclosure: Matthew Clarke owns or indirectly controls shares in Bell Canada (TSE:BCE).