Rogers Communication Acquires Majority Ownership of Maple Leaf Sports & Entertainment (MLSE) from Bell Canada Enterprises (BCE) for $4.7B

MLSE is the company that owns the Toronto Maple Leafs and Toronto Raptors and was until now co-owned by both Rogers and Bells, which can be described as a duopoly on communications services in their regions.

In a move to separate the tie between the 2 companies, Rogers Communication is now the majority owner of Maple Leaf Sports & Entertainment (MLSE), buying out the stake of its rival Bell Canada Enterprises (BCE) for $4.7B.

MLSE is the company that owns the Toronto Maple Leafs and Toronto Raptors and was until now co-owned by both Rogers and Bells, which can be described as a duopoly on communications services in their regions.

The deal is pending regulator and league approval. It also included access to content rights for the Toronto Maple Leafs and Toronto Raptors on TSN for the next 20 years.

“The Rogers and Bell co-ownership of MLSE was extremely unusual, likening it to “Coke and Pepsi owning a team together.

While the buyout might not make any immediate difference to fans, “what it should mean is that Rogers will spend like the Yankees and Dodgers and Lakers,” said Kaplan.

Cary Kaplan – President of Cosmo Sports Entertainment in Toronto on CBC

If the deal is concluded, Rogers will own 75% of MSLE, MLSE chair Larry Tanenbaum 20%, and the Canadian pension fund Ontario Municipal Employees Retirement System (OMERS) 5%.

The stock price reaction was muted for Rogers, with not much change in the news.

The same can be said for Bell, although it was received a little bit more warmly by the market.

Bell declared that it is selling its ownership stake to reduce its debt and “support its ongoing transformation” from a telecommunications firm to a tech company.

Both companies are well known for their telecommunication offers through various mass media channels and are among the largest companies in Canada. However, they are also innovative companies diversifying their technology portfolio through direct investments, venture branches, and partnerships.

Overall, this deal is part of a consolidation of the telecom industry landscape in Canada, with both Bell and Rogers having made significant acquisitions and massive investments to evolve into full-fledged tech companies at the edge of connectivity and AI technologies.

In the long term, this should give them an edge in managing the transition toward ubiquitous IoT and connectivity.

Bell + Mila For AI Innovation

The AI research Institute Mila, based in Montreal and with 1,200 specialized researchers in machine learning signed with Bell in January 2024 an 18-month deal to improve customer experience and business performance.

For example, this extends to MyBell, an app letting Bell’s customers manage all their bills, accounts, services, etc. online.

“Becoming an AI leader is key to our transition from a traditional telco to a tech services leader. Working with a global leader like Mila right here in Montréal is a great opportunity for Bell to benefit from leading-edge researchers, advance our AI and Cloud expertise, further improve the customer experience, and establish our role as a technology services leader.”

Michel Richer, Senior VP – Enterprise Solutions, Data Engineering & AI at Bell Canada

Green Initiatives

Bell is also working on reducing its environmental impact. One such initiative is green cooling systems for IT.

The company is reducing its energy consumption and greenhouse gas emissions through multiple methods:

This led to a 40% reduction in energy consumption, as well as an improved safety profile.

Cloud Computing

In May 2024, Bell acquired FX Innovation, a Montréal-based provider of cloud-based workflow automation for businesses.

It also signed a multi-year strategic agreement with ServiceNow that will be implemented by FX Innovation. The goals will be to:

5G

Bell's 5G and 5G+ network is one of Canada's largest.

The 5G+ network will be deployed in limited areas of Toronto and Kitchener-Waterloo, and aims for peak theoretical download speeds of up to 4Gbps in select areas, with field test download speeds reaching 2Gbps. This makes it the fastest 5G network in Canada.

It also offers private 5G networks in partnership with Megalab for the mining industry, Cisco, and the PIER.

Bell Ventures

This branch of the BCE Group launched in 2022 is investing in early-stage tech companies relevant to Bell's innovation strategy.

This includes for example:

Bimcor

Bimcor, a wholly owned subsidiary of Bell Canada, currently manages over $30 billion invested in a wide range of public and private financial assets, mainly on behalf of pension funds of Bell Canada and its various subsidiaries and affiliates.

It is one of the largest private-sector pension fund managers in Canada.

5G & High-Speed Telecommunications

Besides the ongoing “classical” 5G deployment, Rogers is also collaborating with CableLabs to use cable network infrastructure for 5G connectivity.

This “10G” technology allows for speeds up to 10 times faster than today with enhanced reliability and minimal latency.

This follows the acquisition by Rogers of Shaw