Rogers Communications Inc. (RCI) shares rose on Thursday after the company announced on Wednesday that it has reached an agreement to acquire Bell’s 37.5% stake in Maple Leaf Sports & Entertainment (MLSE) for $3.46 billion (Canadian $4.7 billion).
Once the deal is finalized, Rogers will hold a 75% controlling interest in MLSE, while Bell will keep long-term broadcast and sponsorship rights, including access to 50% of the Toronto Maple Leafs and Raptors games.
This acquisition enhances Rogers’ sports portfolio, which already includes ownership of the Toronto Blue Jays, Rogers Centre, and Sportsnet, along with partnerships with the Vancouver Canucks, Edmonton Oilers, Calgary Flames, and the NHL.
Through this transaction, Rogers aims to continue its investment in bringing championships to Canada, though the deal is still subject to league and regulatory approvals.
“As Canada’s leading communications and entertainment company, live sports and entertainment play a vital role in our core business strategy,” stated Tony Staffieri, president and CEO of Rogers Communications.
In July, the company reported second-quarter revenues of $3.7 billion (C$5.093 billion), falling short of the consensus estimate of $3.76 billion (C$5.105 billion).
As of June 30, the firm had $3.17 billion (C$4.3 billion) in available liquidity, which included $331.98 million (C$0.45 billion) in cash and cash equivalents and $2.8 billion (C$3.85 billion) available through bank and other credit facilities.
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