BCE Inc.

BCE Inc., an abbreviation of its former name Bell Canada Enterprises Inc., is a publicly traded Canadian holding company for Bell Canada, which includes telecommunications providers and various mass media assets under its subsidiary Bell Media Inc.<ref>Template:Cite web</ref> Founded through a corporate reorganization in 1983, when Bell Canada, Northern Telecom, and other related companies all became subsidiaries of Bell Canada Enterprises Inc., it is one of Canada's largest corporations. The company is headquartered at 1 Carrefour Alexander-Graham-Bell<ref>Template:Cite web</ref> in the Verdun borough of Montreal, Quebec, Canada.

BCE Inc. is a component of the S&P/TSX 60 and is listed on the Toronto Stock Exchange and the American-based New York Stock Exchange. It was ranked as Canada's 17th biggest corporation by revenue as of June 2014,<ref>FP500: 2014. Retrieved March 6, 2016 Archived June 18, 2014</ref> and as the ninth-largest by capitalization as of June 2015.<ref>Investor 500 2015: Canada's Biggest 15 companies by market cap, Canadian Business, June 16, 2015 Template:Webarchive. Retrieved March 6, 2016</ref>

History

Logo used by the Bell Telephone Company of Canada from 1902 to 1922

The Bell Telephone Company of Canada Ltd. was created by an act of Parliament on April 29, 1880.<ref>Template:Cite web</ref> Later known as Bell Canada, its charter granted it the right to construct telephone lines alongside all public rights-of-way in Canada. Under a licensing agreement with the US-based American Bell Telephone Company, Bell also manufactured telephones and telephone equipment, an activity that would be spun off in a separate company that later became Northern Telecom and then Nortel Networks.

In 1983, all of the Bell Canada group of companies (also known as the "Bell Group") were placed under a new holding company, Bell Canada Enterprises Inc. (BCE).<ref>Template:Cite web</ref> This corporate reorganization resulted in Bell Canada and its subsidiaries, including Northern Telecom (later Nortel Networks) and over 80 others, becoming subsidiaries of the new holding company, BCE. Under the new parent, each company was owned directly by BCE, which had the benefit of freeing the manufacturing company, Nortel, and other holdings from the heavily regulated telephone company, Bell Canada. Under a variety of leaders, BCE has embarked on a series of diversifications, consolidations, and corporate strategies.<ref>Bell Canada Enterprises, The Canadian Encyclopedia. Retrieved March 6, 2016</ref> In 1988, Bell Canada Enterprises was shortened to BCE Inc.

Diversification and expansion

In 1983, A. Jean de Grandpré, chairman of Bell Canada, was appointed as the first chairman and chief executive officer (CEO) of BCE.<ref>Bell Canada Enterprises Inc. has become the new parent..., UPI, April 29, 1983. Retrieved March 6, 2016</ref> The company soon embarked on a major diversification into property development, the energy sector, financial services, and other sectors. Within a few years, it became the first Canadian company to report Template:CAD in profits.

When Jean Monty assumed the job of CEO in 1998, he pursued a convergence strategy, attempting to combine both content creation and distribution within BCE, and to take greater advantage of the emerging Internet market. BCE's acquisition in 2000 (and subsequent financing) of overseas carrier Teleglobe cost billions of dollars. BCE sold Teleglobe two years later; Jean Monty resigned and was succeeded by Michael Sabia as CEO.<ref>Template:Cite web</ref><ref>Template:Cite news</ref>

Refocus on core business

Michael Sabia refocused BCE on its core telecommunications business, prompting BCE to buy back the 20% share in Bell Canada that it had sold in 1999 to Ameritech (later acquired by SBC Corporation).<ref>Template:Cite press release</ref> BCE also spun off operating units that it did not consider to be core to its business, including Emergis in 2004, and Bell Globemedia and Telesat Canada in 2006.

On February 1, 2006, stating the need to remain competitive, Bell Canada announced job cuts of 3,000 to 4,000 employees by the end of 2006.<ref>Template:Cite news</ref>

On April 28 that year, BCE announced that CEO Michael Sabia was taking a 455% pay increase; his salary being raised from Template:CAD to $6.71 million. The pay included a $1.25 million salary, a $2.2 million bonus that Sabia converted to deferred share units, a long-term incentive payout of $3 million and other compensation, the filing shows. Bell Canada also posted record revenue increases for the previous fiscal year.Template:Citation needed

Under pressure from investors, on October 11, 2006, BCE announced it would be wound down, with its remaining assets converted to an income trust so its income could be distributed directly to shareholders through dividends, avoiding corporate taxes.<ref>Template:Cite news</ref> The new entity was planned to be named "Bell Canada Income Fund". As part of this restructuring, Bell Aliant offered to take Bell Nordiq private, while remaining separate from the new Bell trust.<ref>BCE to be wound down, Bell Canada to convert to income trust Template:Webarchive, BCE press release, October 11, 2006</ref> Due to announced changes in taxation law by the Canadian federal government, on December 12, 2006, BCE announced it would not proceed with its planned conversion to an income trust.<ref>BCE dies Bell lives as trust, The Globe and Mail, Oct. 12, 2006. Retrieved March 6, 2016</ref><ref>BCE drops its income-trust plan, Montreal Gazette, December 13, 2011Template:Dead link. Retrieved March 6, 2016</ref> It then started planning a restructuring that would have eliminated the BCE holding company,<ref>Template:Cite press release</ref><ref>Template:Cite web</ref> but this was put on hold when the company began attracting takeover bids.

In February 2021, and in line with the growing importance of 5G wireless networks, BCE announced the launch of the largest investment program in its history to double the proportion of Canadians covered.<ref>Template:Cite web</ref>

Proposed takeover

Due to its stagnant share price, starting in April 2007, BCE was courted for acquisition by pension funds and private equity groups, including a consortium led by the Canada Pension Plan Investment Board (with Kohlberg Kravis Roberts as one of the participants), a consortium led by the Ontario Teachers' Pension Plan (OTPP), and a consortium that included Cerberus Capital Management.<ref>Template:Cite web</ref> On June 30, 2007, BCE accepted a bid of $42.75 per share in cash, for a total valuation of $51.7 billion, from the group led by the OTPP, and including Providence Equity Partners, Madison Dearborn Partners, Merrill Lynch Global Private Equity, and Toronto-Dominion Bank. The proposed deal would have been the largest acquisition in Canadian history and the largest leveraged buyout ever.<ref name="CanWest-BCETeachers">Template:Cite web</ref><ref name="NYT-banks">Template:Cite news</ref> The deal was approved by BCE shareholders,<ref>Template:Cite news</ref> Quebec Superior Court<ref name="CBC-QSCApproval">Template:Cite news</ref> (whose ruling was overturned by the Quebec Court of Appeal,<ref name="NYT-QuebecCourt">Template:Cite news</ref> but was later upheld by the Supreme Court of Canada<ref name="CP-SupremeApproval">Template:Cite web</ref>), and the CRTC, subject to certain conditions for its corporate governance structure to ensure that Bell remained under Canadian control.<ref name="CNW-CRTC-approval">Template:Cite web</ref> (See BCE Inc v 1976 Debentureholders for further information).

Due to the tightening of the credit market caused by the subprime mortgage crisis, the investment banks financing the deal – led by Citigroup, Deutsche Bank and the Royal Bank of Scotland – started negotiations on May 16, 2008, to revise the terms of their loans with greater interest rates and greater restrictions to protect themselves.<ref name="NYT-banks" /> On July 4, 2008, BCE announced that a final agreement had been reached on the terms of the purchase,<ref name="BCE-2008FinalAgreement">Template:Cite press release</ref> with all financing in place, and Michael Sabia left BCE, with George Cope assuming the position of CEO on July 11.<ref name="2008NewCEO-PR">Template:Cite press release</ref>

On November 26, 2008, BCE announced that KPMG had informed BCE that it would not be able to issue a statement on the solvency of the company after its privatization, one of the required conditions of the buyout. As a result, the purchase was cancelled.<ref name="CBC-BuyoutCancelled">Template:Cite news</ref><ref name="BCE-solvencyTest">Template:Cite press release</ref>

Expanding again into mass media

A Bell Media/CTV antenna in Ottawa, 2010. BCE Inc. gained full control of CTVglobemedia in 2010.

With Shaw Communications purchasing the Global Television Network, Vidéotron launching its wireless telephone network with video content as a key selling point,<ref name="CTV-Bell-Bet">Template:Cite news</ref> and the enormous popularity of wireless and Internet video and other media streams at the 2010 Vancouver Olympics,<ref name="Bell-Vancouver-Olympics-multimedia">Template:Cite news</ref> Bell once again sought to bring a content provider into its portfolio. In September 2010, Bell announced a deal to reacquire full control of the broadcasting properties owned by CTVglobemedia including the CTV Television Network. Bell also obtained a 15% interest in The Globe and Mail, CTVglobemedia's other major asset, with the remaining 85% owned by the Thomson family.<ref name="CTV-purchase">Template:Cite news</ref> Through this acquisition, Bell responded to an increasing trend away from traditional cable and satellite delivery channels and towards new distribution methods over the Internet and wireless networks.<ref name="CTV-purchase-analysis">Template:Cite news</ref> The CRTC approved the transaction in March 2011.<ref name="CRTC-approval">Template:Cite web</ref>

In 2016, BCE announced that it had entered an agreement to acquire Manitoba Telecom Services (MTS) in a transaction worth $3.9 billion. The deal was approved by both companies' shareholders and boards of directors, and closed in March 2017 after the Competition Bureau and other agencies approved of the acquisition.<ref>Template:Cite news</ref>

Cuts and changes in business strategies

In June 2023, BCE announced that it was cutting 1,300 positions across its telecom and media operations (around three per cent of its workforce, and of which approximately 30% were unfilled vacancies), including six per cent of positions at Bell Media (which had 5,645 employees at the end of 2022).<ref name="cp-cuts-2023">Template:Cite web</ref><ref>Template:Cite web</ref> The company also announced it would be closing or selling nine AM radio stations, some of which had changed to automated formats during previous rounds of cuts. Three stations—CKWW, CKOC, and CHAM—were sold to CINA Media Group.<ref name="cp-cuts-2023" /><ref>Template:Cite web</ref> BCE blamed a number of industry changes and increasing losses in its news divisions for the cuts, while questioning the regulatory priorities of the federal government and the CRTC; one BCE executive mentioned having waited for reforms on some items for years, while also citing "relentless regulatory intervention" by the CRTC to cut wireless and Internet service pricing.<ref name="cp-cuts-20232">Template:Cite web</ref> This rationale was questioned by union officials and other experts who felt Bell should have better prepared for industry changes, or could have waited for the full implementation of the Online Streaming Act (Bill C-11) and the Online News Act (Bill C-18).<ref name="cp-cuts-20232" />

On February 8, 2024, BCE announced that it would cut 4,800 positions, citing declining revenues, and new CRTC requirements mandating that the company offer wholesale access to its fibreoptic networks to competitors. The cuts resulted in major cuts at Bell Media, including cutbacks at CTV News and the proposed sale of nearly half of its radio stations.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite news</ref> In June 2024, BCE announced that it had agreed to sell Northwestel to a consortium of First Nations groups in Northern Canada for around $1 billion.<ref>Template:Cite web</ref>

On September 18, 2024, it was announced that BCE's 37.5% interest in Maple Leaf Sports & Entertainment (MLSE) would be sold to Rogers Communications for $4.7 billion; BCE stated that the sale would be used to fund foundational changes at the company towards being a "techco" rather than a "telco". As part of the agreement, Bell Media reached long-term deals to maintain its media rights to MLSE-owned teams for 20 years at fair market value.<ref>Template:Cite web</ref><ref>Template:Cite news</ref><ref name="seismic">Template:Cite web</ref><ref>Template:Cite web</ref> On November 4, 2024, BCE announced its intent to acquire U.S. telco Ziply Fiber—which operates in the Pacific Northwest—for $5 billion (US$3.6 billion).<ref name=":0">Template:Cite web</ref><ref>Template:Cite news</ref> On August 1, 2025, BCE acquired Ziply Fiber, BCE stated that Ziply will be a wholly owned but separate business unit <ref>Template:Cite web</ref>

Major subsidiaries

As of 2016, BCE Inc. has three primary divisions: Bell Canada, Bell Mobility, and Bell Media, comprising over 80% of BCE's revenue.<ref name="BCE-AR-2015">Template:Cite web</ref> Bell Aliant was a subsidiary company formed in 1999 from the merger of the four BCE-controlled telephone companies serving Canada's Atlantic provinces. In 2016, the operations of Bell Aliant were consolidated into those of Bell Canada.<ref>CRTC Ownership structure 2015. Retrieved March 6, 2016</ref>

Its Bell MTS Inc. subsidiary, owns 100% of its Bell Canada division which includes Bell Aliant, Bell Mobility, Bell Satellite TV, Bell Media, Bell Fibe TV, Virgin Mobile Canada and Lucky Mobile. Bell's flanker wireless brand, Virgin Mobile was officially rebranded to Virgin Plus on July 19, 2021, to reflect the brand's evolution beyond just wireless offerings which now includes Virgin Plus Internet as well as Virgin Plus TV.<ref>Template:Cite web</ref>

The Bell Media assets include three Canadian conventional television networks, CTV, CTV 2 and Noovo along with dozens of specialty television channels including BNN Bloomberg, CTV Comedy Channel, CTV News Channel, CTV Drama Channel, CTV Sci-Fi Channel, Much, E!, Oxygen, TSN, RDS, USA Network and 109 licensed radio stations in 58 markets across the country.<ref>Template:Cite web</ref> It also operates the premium television service (formerly The Movie Network) and over-the-top streaming service Crave, which most prominently holds rights to HBO, Max,<ref>Template:Cite web</ref> and Starz original series, as well as other feature films and original series.<ref>Template:Cite web</ref><ref name="cp-crave-starz">Template:Cite web</ref>

BCE also owns 18% of the Montreal Canadiens ice hockey club, and (together with BCE's pension plan) a 37.5% interest in Maple Leaf Sports & Entertainment (owner of several Toronto sports franchises).<ref>https://www.theglobeandmail.com/report-on-business/bell-rogers-now-official-owners-of-mlse/article4493958/Template:Cite news</ref>

Bell Canada

Bell Canada headquarters in Montreal. The telecommunications company is a subsidiary of BCE Inc.

Bell Canada formed the primary historic core of the company in central, Atlantic, and northern Canada.

• Bell Aliant
• Distribution (Ontario, Quebec, Atlantic) – Bell Canada, Cablevision du Nord de Quebec Inc.
• Bell MTS
• Bell Satellite TV – Bell ExpressVu Limited Partnership

Bell Media

Bell Media headquarters at 299 Queen Street West in Toronto. The company is BCE's mass media subsidiary.

Bell Media is the BCE broadcast and media subsidiary. In 2000, BCE bought the CTV Television Network for $2.3 billion. The company combined CTV with its holdings in The Globe and Mail newspaper to form Bell Globemedia, with BCE owning 70% and Thomson Newspapers and Woodbridge Co. Ltd. the remainder. In 2005, BCE sold its controlling interest in Bell Globemedia for $183 million to Woodbridge, Torstar, and the Ontario Teachers' Pension Plan, with BCE retaining a 20% stake.<ref>BCE to buy CTV for $1.3B, CBC.ca, September 10, 2010. Retrieved March 6, 2016</ref><ref>BCE sells most of CTV and the Globe, National Post, December 3, 2011. Retrieved March 6, 2016</ref> The company was subsequently renamed CTVglobemedia. In 2007, it acquired most assets of CHUM Limited. In 2010, BCE bought out the other owners, acquiring CTV's specialty television, digital media, conventional TV and radio broadcasting platforms.<ref>Bell Canada parent BCE buys CTV Inc. for $1.3B, CTV.ca, September 10, 2010 Template:Webarchive. Retrieved March 6, 2016</ref> In August 2015, BCE sold its remaining 15% stake in the Globe and Mail to Woodbridge.<ref>Thomson family's Woodbridge buys full control of Globe and Mail, Reuters Canada, August 14, 2015. Retrieved March 6, 2016</ref> Bell Media's subsidiaries: Template:Col div

• Bell Media TV
• Bell Media TV – Sports Specialty Services
• Bell Media TV – Specialty Services (other than Sports)
• Bell Media Radio
• Bell Media Astral – Radio, TV, & Specialty Services

Other holdings

Below is partial list of the holdings of the BCE conglomerate.

Montreal Canadiens

In 2009, BCE partnered with the Molson family in acquiring the Montreal Canadiens Hockey Club and the Bell Centre. The $575 million purchase was termed "the richest deal in NHL history"; BCE's share was reported to be $40 million.<ref>Oh Canadiens: Inside The Richest Deal In NHL History, Forbes Magazine, 12/02/2010. Retrieved March 6, 2016</ref>

Maple Leaf Sports and Entertainment

In 2011, together with Rogers Communications and Kilmer Sports (holding company of Larry Tanenbaum), BCE acquired Maple Leaf Sports & Entertainment, owner of the Toronto Maple Leafs and Toronto Raptors professional sports teams. BCE's interest is held in partnership with Rogers Communications through the holding company 8047286 Canada Inc., 50% owned by Rogers and 50% by BCE holding company 7680147 Canada Inc., which is in turn 74.67% owned by BCE and 25.33% by BCE Master Trust Fund (investment fund of Bell's pension plan).<ref>Template:Cite web</ref>

Kilmer Sports and BCE co-owned the Toronto Argonauts, a team the companies purchased in 2015; BCE and Kilmer owned 50% of the team before selling it to Maple Leaf Sports and Entertainment in 2018 .<ref name=bellannualreport>Template:Cite web</ref>

Past holdings

BCE Development

BCE Development was founded as Daon Development by Vancouver-based developer Jack Poole in 1964. In the mid-1970s, Daon became known for expanding aggressively in the United States. The company first entered the American market in 1976 and nearly quadrupled its total assets to $1.67 billion in four years.<ref>Bell Canada to Acquire Daon Development Co. : Seeks Controlling Interest in Firm Whose Lightning Rise Ended With the Recession, LA Times, February 3, 1985. Retrieved March 6, 2016</ref> It borrowed heavily to finance deals for premium office space and condominium conversions. By 1981, the company had assets worth more than $2 billion. When interest rates soared, however, Daon was caught overextended, could not meet its debt payments, and was forced into a major restructuring with its bankers. In 1985, BCE acquired 68% of Daon from its creditors and changed its name to BCE Development Corporation in February 1986. In March 1986, it agreed to acquire US$1 billion of commercial real estate from the American subsidiary of the Oxford Development Group Ltd., more than doubling BCED's portfolio. BCE stated its goal was to convert from a land developer to a developer of prime commercial properties.<ref>Chairman rebuilding former Daon Corp., NY Times, March 14, 1986. Retrieved March 6, 2016</ref>

In July 1990, BCE Inc. sold 50% ownership in BCE Development to Carena Developments Ltd. (controlled by the Toronto branch of the Bronfman family). BCED was renamed Brookfield Development Inc. (now Brookfield Asset Management) followed in 1994 by the remaining 50%.<ref>BCE Development Changes Its Name, Chicago Tribune, July 3, 1990. Retrieved March 6, 2016</ref><ref>Brookfield Properties Corporation, Encyclopedia.com. Retrieved March 6, 2016</ref><ref>Brookfield Office Properties history Template:Webarchive. Retrieved March 6, 2016</ref>

Montreal Trust

In March 1989, BCE bought a 64% stake in Montreal Trust from Power Financial for $547 million. The diversification was considered a "natural evolution" due to BCE's long-standing interest in financial services, its familiarity with selling services to the public, and its in-house money management operations. In 1993, BCE sold Montreal Trust to Scotiabank for about $290 million, taking a substantial loss.<ref>Rogers bank plans: Lessons from BCE, Financial Post, September 7, 2011. Retrieved March 6, 2016</ref>

Nortel Networks

A Bell Nortel Millennium payphone, introduced in the 1990s. Nortel was a BCE subsidiary from 1983 to 2000.

When BCE was created in 1983, Northern Telecom was transferred from a subsidiary of CRTC-regulated Bell Canada to a non-regulated subsidiary of BCE. In 1998, with Nortel's acquisition of Bay Networks, the company's name was changed to Nortel Networks. As a consequence of the stock transaction used to purchase Bay Networks, BCE's holding was diluted to a minority stake. In 2000, BCE spun out Nortel, distributing its stock in Nortel to its shareholders. Nortel's share price collapsed with the dot-com crash of 2000 and combined with a mishandling of a subsequent accounting investigation, the company never fully recovered. It was liquidated in 2009.<ref>Nortel – Collapse of a giant, Canadian Business, January 14, 2009 Template:Webarchive. Retrieved March 6, 2016</ref><ref>Lessons from Nortel: Acquisitions spree, bad management calls led to tech giant's fall, study says, Financial Post, March 17, 2014. Retrieved March 6, 2016</ref>

Teleglobe Inc.

In 1987, BCE purchased a 30% stake in Memotec Data Corporation for $196 million.<ref>Babe, Robert E. Telecommunications in Canada: Technology, Industry, and Government. University of Toronto Press, 1990. Page 30. Template:ISBN. Retrieved March 6, 2016</ref> When Memotec purchased international telecommunications carrier Teleglobe Canada from the Canadian government in 1987, the company was renamed Teleglobe Inc. In March 2000, BCE announced the purchase of the Teleglobe shares it did not own for $9.65 billion.<ref>BCE goes International with Teleglobe, IT Canada, March 9, 2000. Retrieved March 6, 2016</ref> In April 2002, BCE announced it was cutting off long-term funding of Teleglobe, would give up on the company, and take a charge of up to $8.5 billion.<ref>BCE sells last of Teleglobe, Light Reading, 1/2/2003. Retrieved March 6, 2016</ref> In 2005, Teleglobe was sold to the Tata Group and is now known as VSNL International Canada. In September 2002, it sold its voice and data business for $197 million.<ref>Teleglobe sells voice and data business, CBC, September 19, 2002. Retrieved March 6, 2016</ref>

Telesat Canada

In 1970, Bell Canada acquired a minority interest in satellite telecommunications carrier Telesat Canada. In 1998, BCE raised its stake to 100% at a cost of $158 million for the 42% of shares it did not already own.<ref>Canada's BCE sells stake in British Firm, Journal of Commerce, May 13, 1998. Retrieved March 6, 2016</ref> In December 2006, BCE announced the sale of Telesat to Loral Space & Communications and the Public Sector Pension Investment Board for CAD$3.28 billion.

TransCanada Pipelines

In 1983, BCE acquired a controlling 42% stake in TransCanada PipeLines Limited (TCPL). In 1990, it announced its departure from the energy sector and sold its stake in TCPL for $1.1 billion.<ref>BCE Inc. – Company Profile, Reference for Business. Retrieved March 6, 2016</ref>

Corporate governance

BCE Inc.'s ISS Governance QualityScore as of December 3, 2019, is 2. The pillar scores are Audit: 1; Board: 3; Shareholder Rights: 3; Compensation: 3.

Corporate governance scores are provided to Yahoo! Finance by Institutional Shareholder Services (ISS). Scores denote a decile rank relative to index or region. A decile score of 1 denotes the lowest governance risk, while a score of 10 denotes the highest governance risk.<ref>Template:Cite web</ref>

Board of directors

As of March 2020, the current board of directors<ref>Template:Cite web</ref> are: Barry K. Allen, Mirko Bibic, Sophie Brochu, Robert E. Brown, David F. Denison, Robert P. Dexter, Ian Greenberg, Katherine Lee, Monique F. Leroux, Calin Rovinescu, Karen Sheriff, Robert C. Simmonds, and Paul R. Weiss.

Since inception, BCE has had five CEOs:Template:Col div

• A. Jean de Grandpré: 1983–1988
• Template:Interlanguage link: 1988–1992
• Lynton Wilson: 1992–1998
• Jean Monty: 1998–2002
• Michael Sabia: 2002–2008
• George A. Cope: 2008–2020
• Mirko Bibic: 2020-present <ref>Template:Cite web

</ref>Template:Col div end

See also

• Communications in Canada
• Tier 1 network
• List of mobile network operators
• List of telephone operating companies
• Triple play (telecommunications)

External links

• Template:Official
• Template:Finance links