Broadcaster ended agreement with Craig Media.
In the wake its acquisition by Toronto-based CHUM Ltd. earlier this year, MTV Networks International has exercised its right today (May 10) to end its agreement with Canadian broadcaster Craig Media Inc. Both MTV and MTV2 will cease to air in Canada effective June 30. CHUM will re-brand the networks starting on the same date.
A statement by MTV Networks International indicated that it "remains committed to Canadian audiences and will continue our strong presence in the market via broadcast television distribution and digital media activities."
MTV Canada and MTV2 were among the channels CHUM acquired in its purchase of Craig Media in December 2004. Under the terms of its original joint venture and licensing agreements with Craig Media, MTV Networks International had the right to terminate such agreements upon a change of control in the entity that owned and operated MTV Canada and MTV2.
As a result of the termination, MTV Networks International no longer has the option to acquire an equity interest in the Canadian-based channels.