Rogers 2008 Annual Report Download - page 100

96 ROGERS COMMUNICATIONS INC. 2008 ANNUAL REPORT
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The goodwill has been allocated to the Cable reporting
segment and is not tax deductible.
(iii) channel m:
On April 30, 2008, the Company acquired the assets of
Vancouver multicultural television station channel m, from
Multivan Broadcast Corporation, for cash consideration of
$61 million. The acquisition was accounted for using the
purchase method with the results of operations consolidated
with those of the Company effective April 30, 2008. The fair
values of the assets acquired and liabilities assumed, which
were finalized during 2008 are as follows:
Purchase price $ 61
Current assets $ 5
Broadcast licence $ 9
PP&E 6
Current liabilities (7)
Fair value of net assets acquired $ 13
Goodwill $ 48
The goodwill has been allocated to the Media reporting
segment and is tax deductible.
(iv) CIKZ-FM Kitchener:
On January 27, 2008, the Company acquired the radio assets of
CIKZ-FM Kitchener in exchange for: the net assets of CICX-FM
Orillia; the redemption of an investment in the shares of the
Kitchener station of $4 million; and $4 million in cash. The
transaction was accounted for using the purchase method
with the results of operations consolidated with those of the
Company effective January 27, 2008.
(v) Other:
During 2007, the Company announced its intention to divest
of the assets of two television stations in British Columbia and
Manitoba for approximately $6 million as part of the Canadian
Radio-television and Telecommunication Commission (“CRTC”)
approval to secure the Citytv acquisition. The transaction to
divest these stations received CRTC approval on March 31, 2008
and the transaction closed on May 25, 2008.
During 2008, the Company made various other acquisitions,
accounted for by the purchase method, for cash consideration
of approximately $4 million.
(A) 2008 ACQUISITIONS AND DIVESTITURES
(i) Outdoor Life Network:
On July 31, 2008, the Company acquired the remaining two-
thirds of the shares of Outdoor Life Network that it did not
already own, for cash consideration of $39 million. The
acquisition was accounted for using the purchase method
with the results of operations consolidated with those of the
Company effective July 31, 2008. The purchase price allocation
is preliminary pending finalization of valuations of the net
identifiable assets acquired. The preliminary estimated fair
values of the assets acquired and liabilities assumed are as
follows:
Purchase price $ 39
Current assets $ 11
Current liabilities (3)
Preliminary fair value of net assets acquired $ 8
Goodwill $ 31
The goodwill has been allocated to the Media reporting
segment and is not tax deductible.
(ii) Aurora Cable TV Limited:
On June 12, 2008, the Company acquired 100% of the
outstanding shares of Aurora Cable TV Limited (“Aurora
Cable”) for cash consideration of $80 million, including a
$16 million deposit paid during the first quarter of 2008.
In addition, the Company contributed $10 million to
simultaneously pay down certain credit facilities of Aurora
Cable. Aurora Cable provides cable television, Internet and
telephony services in the Town of Aurora and the community
of Oak Ridges, in Richmond Hill, Ontario. The acquisition was
accounted for using the purchase method with the results of
operations consolidated with those of the Company effective
June 12, 2008. The fair values of the assets acquired and
liabilities assumed, which were finalized during 2008 are as
follows:
Purchase price $ 80
Current assets $ 1
Subscriber base 13
PP&E 31
Current liabilities (3)
Future income tax liabilities (8)
Credit facilities (10)
Fair value of net assets acquired $ 24
Goodwill $ 56
4. BUSINESS COMBINATIONS AND DIVESTITURES