BCE's Bell Media Expands Globally, Buys Majority Stake in Sphere Abacus

BCE Inc.’s BCE unit, Bell Media, recently augmented its footprint in the global entertainment industry by purchasing a majority stake in Montréal-based Sphere Abacus, a top global content distributor, through its parent company, Sphere Media International. The deal is expected to be finalized in the upcoming weeks.With this partnership, Bell Media and Sphere Media aim to accelerate growth, increase international content reach and broaden opportunities for Canadian creators. Sphere Abacus will now serve as the primary global distributor for Bell Media’s owned distribution rights, allowing the company to participate more actively in the creative value chain. A key aspect of the strategic deal is expanding Sphere Abacus’s content catalog. Following the transaction, the combined Sphere Abacus and Bell Media library will boast more than 5,500 hours of premium programming. Some of the standout titles in the expanded catalog are THE MIGHTIEST, SORT OF, LATE BLOOMER, DEEP FAKE, SMALL ACHIEVABLE GOALS, THE FAMILY NEXT DOOR, SCRUBLANDS, MAKING MANSON, LEAVING NEVERLAND 2: SURVIVING MICHAEL JACKSON, PAID IN FULL: THE BATTLE FOR BLACK MUSIC, and MARK MCKINNEY NEEDS A HOBBY.These titles span various genres, ensuring an engaging selection for global audiences. The integration of these premium productions into BCE’s distribution pipeline reinforces the company’s commitment to delivering compelling, high-quality storytelling to international markets. The relentless focus on international expansion, content acquisition and strategic partnerships ensures that Bell Media remains at the forefront of media distribution.Advancements in Bell Media Drive BCE’s Growth RoadmapBell's strategic moves and investments continue to pave the way for ongoing expansion in the telecommunications and media industries. In January 2025, Bell Media introduced new bundle subscriptions for Crave with TSN and RDS. The Ultimate Entertainment and Sports Bundle includes Crave and TSN for English viewers and Crave and RDS for French viewers. These bundles offer savings compared to separate subscriptions and include HBO exclusives, hit series, blockbusters, Crave Originals and top sports coverage from TSN and RDS.In December 2024, Bell Media partnered with Point Grey Pictures and Lionsgate Studios Corp. to develop and produce a new scripted television series. This collaboration, established through Lionsgate's first-look deal with Point Grey, marks Point Grey's first venture into creating a scripted show for the Canadian market. It also collaborated with Shopsense AI, a pioneer in shoppable TV technology, to offer millions of Canadian viewers a cutting-edge second-screen shopping experience. In November 2024, it partnered with StackAdapt to offer its connected TV, display, video, audio and digital out-of-home channels on the StackAdapt platform. This allows advertisers to expand their campaigns across Bell Media’s digital network, including live sports.Driven by digital advertising growth, synergy from the OUTEDGE Media Canada acquisition and strong TV sports specialty performance, Bell Media delivered a strong performance in the last reported quarter, with operating revenues increasing 1.2% to C$832 million. In 2024, digital revenues made up 42% of Bell Media's total revenues, rising from 35% in 2023.Headwinds Weighing on BCE’s 2025 GuidanceDespite continued growth momentum in the Bell Media unit, BCE anticipates that pricing challenges, slower subscriber growth, lower wireless sales and increasing media expenses will adversely impact both revenues and adjusted EBITDA. For 2025, management expects revenues to witness a change between (3%) and 1%, with adjusted EBITDA projected to shift in the (2%) to 2% range.It also estimates that reduced capital spending will drive free cash flow growth, projected to be between 11% and 19%. Adjusted EPS growth is likely to range between (13%) and (8%).BCE’s Zacks Rank & Stock Price PerformanceBCE currently carries a Zacks Rank #3 (Hold). Shares of the company have lost 33.9% in the past year compared with the Zacks Diversified Communication Services industry's decline of 12.3%.Image Source: Zacks Investment ResearchStocks to ConsiderSome better-ranked stocks from the broader technology space are InterDigital, Inc. IDCC, Ubiquiti Inc. UI and Arista Networks, Inc. ANET. IDCC & UI presently sport a Zacks Rank #1 (Strong Buy), while ANET carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. 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