Despite the company receiving a reprieve from Canada’s broadcasting regulator, critics say Corus Entertainment Inc.’s new owners will need to invest in differentiated content if they are to turn around its financial situation.
The beleaguered broadcaster’s proposed recapitalization plan got the green light from the CRTC on Thursday, in a move that would see a change in ownership and shift effective control of all licensed programming services operated by the company and its subsidiaries.
Corus had indicated to the CRTC that the proposed deal is necessary to address its high debt load and improve its financial stability so it could continue to operate. It said the transaction is expected to close in the coming weeks.
But with the lifeline, Corus must avoid “simply repeating what has got them into trouble in the past,” said Jeffrey Dvorkin, former director of the University of Toronto’s journalism program.
He said much of the television and radio broadcaster’s content didn’t stand out as unique to audiences and advertisers.
“The challenge is to have a management culture that is prepared to take some risks,” said Dvorkin, adding there had been hesitancy at Corus to produce content “that is a little bit off the beaten track.”
“Unless there is real diversity in media, that is to say operating beyond ... the low-hanging fruit of local news, weather, traffic and crime, and providing something of substance and curiosity that attracts eyes and ears, it’s bound to end up in the same place as it did recently.”
Corus owns 25 specialty television services and 15 conventional stations, 36 radio stations, as well as digital and streaming platforms.
Corus has said the deal, which it initially announced last fall, would lead to annual cash interest savings of up to $40 million and preserve Corus “in its vital role as a leading independent Canadian broadcaster.”
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 representing the remaining one per cent of the new company.
Corus sought court approval for the proposal after a shareholder vote in January failed to pass.
On Thursday, the CRTC said Corus is facing “significant financial challenges” from both broader industry pressures and its capital structure that threatened its continued viability. The regulator determined the proposed transaction would help ensure the company remains part of the Canadian broadcasting industry.
“The commission notes that news services across Canada continue to face significant pressures, and considers that the continued availability of Corus’s news and information services — including those provided through its radio stations — serves the public interest,” it said.
But the decision came as a surprise to Sébastien Ouellet, a spokesperson for a group of minority Corus shareholders that had opposed the recapitalization plan.
The group comprising 13 individuals and three companies raised particular concern about the role of Canso Investment Counsel Ltd., which Corus has said is expected to hold more than 44 per cent of the voting shares in NewCo — making it the new entity’s largest shareholder.
As an investment fund rather than a media operator, Canso lacks the experience needed to operate radio and television networks, they argued, adding that Canso hadn’t indicated how it planned to help Corus cope with difficult market conditions and develop new content.
“I wish the best to Canso and the management team ... but my main concern is that they will probably start to sell some parts of it,” Ouellet said.
“I fear we will see that the new owner will prefer to sell parts of it to repay themselves and I don’t think that we will have a Corus in two or three years. I don’t think this company will still exist in the way it exists now.”
The minority shareholders had called for a public hearing on the matter, a request that went unanswered by the CRTC.
Dvorkin said he had similar concerns around the new owners’ priorities.
“The problem is that a lot of these investors are not very focused on the quality of the broadcast,” he said.
“They’re interested in tonnage rather than in quality.”
Corus on Thursday said its business is expected to continue as normal with no anticipated effect on its obligations to clients, producers, suppliers or employees.
The company has faced significant financial struggles, reporting last month it incurred a net loss attributable to shareholders of $36.5 million in its third quarter, as its revenue for the period fell 16 per cent compared with last year.
In August, the company made cuts to its TV and radio operations, saying at the time the changes were difficult but necessary to ensure its teams are structured in a sustainable way, while minimizing disruption to local news and audio delivery.
The company said the changes included jobs at Global BC, Global National, News 640 and talk radio.
This report by The Canadian Press was first published Sept. 18, 2026.
Sammy Hudes, The Canadian Press
