Michael Sabia's Core Strategy
Over the past two years, BCE CEO Michael Sabia has pursued a strategy focused on core telecom network assets. In pulling a u-turn away from predecessor Jean Monty's ambitious multi-billion dollar convergence agenda, Sabia has returned BCE back to its roots. From buying the 20% stake back from SBC Communications and privatizing Bell Mobility to acquiring 360Networks' Canadian assets earlier this week for $275-million, Sabia's strategy is clear. The big question is how long will Sabia hold on to BCE's media assets - the Globe & Mail and CTV. In a conference call earlier after the 360Networks deal, he danced around the subject - citing the Globe's good performance and the fact CTV has 14 out of the top 20 shows. He mentioned that BCE is trying to figure out where content fits into its communications strategy. Hah! Sabia simply waiting for market conditions to improve so he can sell BellGlobeMedia to the right buyer at the right price. With 360Networks in the fold, watch Bell pour lots of money into going after Telus Corp.'s corporate business in Alberta and B.C. If Telus CEO Darren Entwistle thought he had problems with a contentious labor situation, a wireline business that is eroding and a difficult hostile bid for Microcell Telecommunications Inc. he ain't seen nothing yet.
