Strange bedfellows Rogers and Bell, seem to be headed for divorce with a hefty settlement for Bell.

I always found it odd that these natural competitors partnered on the biggest deal in Canadian sports business when they partnered up to buy equal 37.5% stakes in Maple Leafs Sports and Entertainment in 2012. For context, MLSE owns the Toronto Maple Leafs of the NHL, Toronto Raptors of the NBA, Toronto FC of MLS and Toronto Argos of the CFL, along with some real estate such as Scotiabank arena where the Leafs and Raptors play and OVO centre where the Raptors practice.

As an aside, Rogers is also sole owner of the Toronto Blue Jays and the Rogers Centre where the Blue Jays play. But that has nothing to do with this deal. Just a footnote to show Rogers is really building one of the biggest sports empires in the world.

Bell on the other hand seems to moving away from sports and sports media as a core business. Their main sports media property TSN (The Sports Network) has been losing the content battle to Sportsnet (Rogers sports media arm) badly over the last decade. It seems Bell management is not looking to grow the sports division and is more interested in paying down debt and boosting dividends for shareholders. They certainly got a very hefty price for their shareholders. 4.7B for their 37.5% stake. That is a wild 12.55B valuation for the entire MLSE.

Call me skeptical but I don't think MLSE is worth anywhere near 12.55B. I guess Bell was perfectly happy to get out now at a lofty valuation considering they got in at a 1.32B valuation 12 years ago.

The previous owner before Rogers/Bell was the Ontario Teachers Pension Plan. They sold to invest in other things. Unless they bought Bitcoin (they didn't) it's hard to imagine they outperformed.

Here is source regarding the sale: https://www.cp24.com/news/rogers-communications-to-buy-out-bell-s-share-of-mlse-for-4-7-billion-1.7042411

Sats for all, GR