
Bell Media, a significant subsidiary of BCE Inc., has announced an impending $410-million acquisition of the Canadian branch of outdoor advertising giant Outfront Media Inc. This deal, expected to close in 2024 pending approval and other conditions, is anticipated to bolster Bell Media’s dominance in Canada’s out-of-home advertising sector, adding Outfront’s 9,325 Canadian advertising displays to its portfolio.
The acquisition will not mark Bell Media’s first venture into the advertorial realm. In 2013, the media conglomerate purchased Astral Media for a staggering $3.2 billion. This move procured one of Canada’s biggest out-of-home advertising brands, introducing approximately 45,000 advertising displays under the Astral brand to Bell’s roster.
This proposed Outfront deal, according to Dwayne Winseck, a professor at Carleton University’s School of Journalism and Communication, is poised to escalate Bell’s share of Canada’s $622-million out-of-home advertising market from a current standing of about 20% to an impressive 35%. The acquisition would propel Bell into a categorically dominant position within this advertising niche, expanding its cross-media advertising opportunities with increased ad targeting capabilities.
Yet, there may be deeper designs at play, Winseck suggests. The deal smells of potential telecom expansion, with Bell potentially seeking core site locations essential for upcoming 5G infrastructure deployments. This would necessitate access to optimal locations such as street furniture and buildings.
The purchase is not simply about advertising displays but also about acquiring thousands of key terrain essential for the rollout of 5G across Canada, given Astral Media and Outfront Media’s existing 50,000-plus sites, observed Winseck. The professor cautioned that any transaction approval should be contingent on a transparent access regime in order not to stifle mobile wireless competition.
Stewart Johnston, Bell Media’s senior vice-president of sales and sports, reaffirmed that out-of-home advertising remains a crucial mass reach mechanism in the ever-evolving digital landscape. The amalgamation of Outfront’s noteworthy Canadian assets would strengthen Astral’s commitment to delivering innovative multi-channel marketing solutions while bolstering Bell Media’s digital stratagem.
Jeremy Male, Outfront Media chair and CEO, suggested the sale would allow them to maintain financial agility while prioritizing their U.S assets. Adam Shine of the National Bank of Canada Financial Markets hinted that Outfront’s geographically diverse portfolio could possibly offset potential competition concerns associated with the acquisition, thus meeting regulatory approvals with ease.