Department of Canadian - Faculty of Social Sciences

Strategic Research and Analysis

Recherche et analyse stratégiques

MAJOR CANADIAN COMPANIES WITH U.S. CULTURAL SUBSIDIARIES by Sharon Jeannotte Strategic Research and Analysis (SRA) Corporate and Intergovernmental Affairs (DGCIA) Department of Canadian Heritage 25 Eddy Street, 13th Floor Section “H” Hull, Québec CANADA K1A 0M5

August 1995

Reference: SRA-153

For a PDF copy of this report contact us at: [email protected] or Fax: (819) 997-6765

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The opinions expressed in this report are those of the author and do not necessarily reflect those of the Department of Canadian Heritage.

International Comparative Research Group Groupe de recherche comparée internationale



TABLE OF CONTENTS

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Hollinger Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Quebecor Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Rogers Communications Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Telemedia Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 The Thomson Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Teleglobe Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 The Seagram Company Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Cineplex Odeon Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Hollinger Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Quebecor Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rogers Communications Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Thomson Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Seagram Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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15 16 17 19 20 22




Executive Summary A preliminary investigation of the U.S. cultural investments of major companies was undertaken by the Strategic Research and Analysis Division in summer 1995 to determine how vulnerable Canadian firms might be to possible U.S. retaliatory trade measures. The following is a summary of the results of this investigation. (All figures are for 1994 and in U.S. dollars.) Eight major Canadian companies were found to have significant cultural holdings in the United States. They are Hollinger Inc., Quebecor Inc., Rogers Communications Inc., Telemedia Inc., The Thomson Corporation, Teleglobe Inc., The Seagram Company Inc. and Cineplex Odeon Corporation. In total, these eight companies own or control over 160 U.S. subsidiaries operating in the cultural field. Four of these companies are headquartered in Montreal (Quebecor, Telemedia, Teleglobe and Seagram’s), three have head offices in Toronto (Rogers Communications, the Thomson Corporation and Cineplex Odeon) and one (Hollinger Inc.) is located in Vancouver. Total assets of these companies amount to approximately $40 billion. The largest (Seagram’s) has assets of about $20 billion. The smallest (Telemedia) has assets of about $116 million. By far, the bulk of these companies’ U.S. holdings are in the broadcasting and publishing industries, although the Seagram Company’s recent acquisition of MCA Inc. has tipped the balance somewhat toward the film, sound recording and leisure industries. In some cases, the corporate relationships of subsidiaries and subsidiaries of subsidiaries is quite tangled, and this report has shown only the top layers of these holdings. Because of the prohibitive cost of on-line searching, this report can only provide a snapshot of the main players. A more complete picture of Canadian ownership of U.S. cultural subsidiaries will require additional research. Sources Who Owns Whom Database, Dun & Bradstreet International Personal contacts with companies

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Company

Hollinger Inc.

Address

1827 W. Fifth Avenue Vancouver, British Columbia V6J 1P5

Business

Publishing, printing and distribution of newspapers and magazines in Canada, the United Kingdom, the United States and Israel; cable television operations, real estate investment

Number of employees

Not available

Total sales

$888,005,000

Total assets

$1,876,978,000

Executives

Conrad M. Black, Chairman of the Board and Chief Executive Officer/President

Number of U.S. affiliates

6

U.S. Affiliates American Publishing Management Services Inc. Chicago Sun Times Pioneer Press Newspapers Inc. Star Publications Daily News The Harlan Daily Enterprise

4




Company

Quebecor Inc.

Address

612 St. Jacques Street Montreal, Quebec H3C 4M8

Business

Publishing, printing and distribution of newspapers, magazines and books

Number of employees

25,900

Total sales

$2,863,651,300

Total assets

$3,004,598,100

Executives

Pierre Peladeau, President

Number of U.S. Affiliates

65

U.S. Affiliates Quebecor Printing USA Corporation Custom Direct Inc. Electronic Publishing Group Print Northwest Pub Data Inc. Quebecor Printing Arlington Heights Quebecor Printing Atglen Inc. Quebecor Printing Book Press Inc. Quebecor Printing Buffalo Inc. Quebecor Printing Clarksville Inc. Quebecor Printing Dallas Inc. Quebecor Printing Dickson Inc. Quebecor Printing Eusey Press Inc. Quebecor Printing Fairfield Inc. Quebecor Printing Federated Inc. Quebecor Printing Glen Burnie Inc. Quebecor Printing Haleton Inc. Quebecor Printing Hawkins Inc. Quebecor Printing Kingsport Inc. Quebecor Printing Martinsburg Inc. Quebecor Printing Memphis Inc. Quebecor Printing Modern Inc. Quebecor Printing Mt. Morris Inc. Quebecor Printing Nashville Inc. Quebecor Printing Orlando Inc. Quebecor Printing Pendall Inc. Quebecor Printing Providence Inc. Quebecor Printing Richmond Inc. Quebecor Printing San Jose Inc.

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Quebecor Printing Semline Inc. (3 companies by this name listed) Quebecor Printing Sherwood Inc. Quebecor Printing St. Cloud Inc. Software Manufacturing Division Specialties Bindery Inc. Imaging Services NADCO Quebecor Printing (USA) Holdings Inc. Quebecor Printing Semline Inc. Quebecor Printing (USA) Corp. The Eusey Press Inc. Federated Lithographers-Printers Holding Company Inc. Federated Lithographers-Printers Incorporated Holyoke Lithograph Inc. Modern Printing and Lithography Inc. Quebecor Destination Services Quebecor List Services Pub/Data Inc. Semline Inc. BPCC (North Carolina) Inc. Compucolor International PGI (North Carolina) Inc. Alco Gravure Industries Inc. Pendall Printing Incorporated Custom Direct Nadco Directory Management Corporation The Webb Company The Book Press Inc. Quebecor Printing Corporation Quebecor Printing Richmond Inc. Quebecor Printing St. Paul Inc. Donohue Paper Sales Corporation Quebecor Printing (listed twice)

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Company

Rogers Communications Inc.

Address

Commercial Union Tower Suite 2600 P.O. Box 249 Toronto Dominion Centre Toronto, Ontario M5K 1J5

Business

Cable TV, broadcasting, mobile communications (cellular), telecommunications

Number of employees

4,000

Total sales

$1,620,842,800

Total assets

$4,414,450,000

Executives

John W. Graham, Chairman of the Board Edward S. Rogers, President and Chief Executive Officer


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U.S. affiliates TS Publications (Florida) Inc. Comprint Inc. Label Art Inc. Rogers Communications Inc., Label Art Inc. Rogers Communications Inc., Maclean Hunter Media Inc. Rogers Communications Inc., Maclean Hunter Medical Communications Group Inc. HP Publishing Company MD Publications Inc. Maclean Hunter Publishing Company Lakewood Publications Inc. Rogers Communications Inc., Presentations Magazine Rogers Communications Inc., M.H. Publishing Company Rogers Communications Inc., M.H. West Inc. Rogers Communications Inc., Maclean Hunter Market Reports Inc. Rogers Communications Inc., Maclean Hunter Presentations Inc. Rogers Communications Inc., Transkrit Corporation Government Forms and Systems Inc. Putnam Graphic Innovations Inc.

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Company

Telemedia Inc.

Address

1411 Peel Street Montreal, Quebec H3A 1S5

Business

Consumer magazine publishing, radio broadcasting, weekly newspapers and consumer coupon distribution

Number of employees

1.335

Total sales

$160,580,800

Total assets

$116,543,810

Executives

Philippe de Gaspé Beaubien, Chairman of the Board R. James McCoubrey, President and Chief Executive Officer


1

U.S. Affiliate Telemedia U.S.A.

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Company

The Thomson Corporation

Address

Toronto Dominion Bank Tower Suite 2706 P.O. Box 24, Toronto Dominion Centre Toronto, Ontario M5K 1A1

Business

Holding company, newspapers, specialized information, publishing, leisure travel group operating primarily in North America and the United Kingdom

Number of employees

22,800

Total sales

$5,849,000,000

Total assets

$8,213,000,000

Executives

Kenneth R. Thomson, Chairman of the Board W. Michael Brown, President


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U.S. affiliates American Banker Bond Buyer Institute for Scientific Information Securities Data Company Inc. Thomson Bank Watch Inc. Thomson Financial Services Inc. Information Access Company Data Sources Interop Inc. Predicasts Thomson Book/Reference Group Bancroft-Whitney Company Boyd and Fraser Publishing Company CDA Investment Technologies Inc. Delmar Publishers Inc. Digitree Inc. Gale Research Inc. Heinle and Heinle Publishers Inc. McKnight Medical Communications Medical Device Register Muller Data Corporation Research Publications Inc. South-Western Publishing Company Thomson Bankwatch Inc. UTLAS International Van Nostrand Reinhold Company

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The Thomson Corporation (Cont’d) Veterinary Medicine Publishing Company Inc. Wadsworth International The Thomson Corporation, Van Nostrand Reinhold The Thomson Corporation, Wadsworth Inc. Brooks/Cole Publishing Company PWS-Kent Publishing Company Wadsworth Publishing Company Thomson Financial Services Thomson US Inc. Thomson Business Information American Health Consultants Compu-Mark ILX Systems Inc. McKnight Medical Communications Company Medical Economics Company Inc. Micromedex Inc. Mitchell International Patient Care Communications Inc. Thomson Professional Publishing Callaghan Company Clark Boardman Company Ltd. Lawyers Cooperative Publishing Company Research Institute of America Maxwell MacMillan Professional and Business Reference Publishing Practitioners Publishing Company Sheshunoff Information Services Inc. Taft Group Warren Gorham Lamont Jane’s Information Group Thomson and Thomson

10




Company

Teleglobe Inc.

Address

1000 de la Gauchetière West Montreal, Quebec H3B 4X5

Business

Development and manufacture of data communication products and services

Number of employees

2,082

Total sales

$982,536,200

Total assets

$1,273,634,460

Executives

Charles Sirois, Chairman of the Board and Chief Executive Officer André Lebel, President and Chief Operating Officer


2

U.S. affiliates ISI Systems Inc. Teleglobe Inc. (U.S. subsidiary)

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Company

The Seagram Company Inc.

Address

1430 Peel Street Montreal, Quebec H3A 1S9

Business

Producer and marketer of distilled wine and spirits, fruit juices and juice beverages and entertainment/communications. (The recent acquisition of 80 per cent of MCA Corporation has not yet shown up in database sources. Post-acquisition figures have been acquired directly from Seagrams.)

Number of employees

16,000 (without MCA), 30,000 (with MCA)

Total sales

$6,400,000,000 (without MCA,fiscal year ended January 31, 1995) $11,000,000,000 (with MCA)

Total assets

$13,000,000,000 (without MCA) $20,000,000,000 (with MCA)

Executives

Edgar M. Bronfman, Chairman of the Board Charles R. Bronfman, Co-Chairman Edgar Bronfman, Jr., President and Chief Executive Officer


12 (13 with MCA)

U.S. affiliates Seagram Chateau and Estate Wines Company The Seagram Beverage Group The Seagram Company Ltd., Tropicana Products Inc. The Seagram Company Ltd., Seagram’s Corporation Research and Development Joseph E. Seagram and Sons (U.S. branch office) The Seagram Company Ltd., The Seagram Classics Wine Company The Seagram Company Ltd., Seagram Beverage Company The Seagram Spirits and Wine Group The Seagram Company Ltd., The House of Seagram Seagram Asia Pacific/Global Duty Free The Seagram Company Ltd., Seagram Latin America Seagrams MCA Inc. (Principal assets listed below) MCA Motion Picture Group MCA Television Group MCA Home Entertainment Group MCA Music Entertainment Group MCA Publishing Group MCA Recreation Services Group MCA/Universal Merchandising MCA Enterprises MCA Development

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The Seagram Company Inc. (Cont’d) Universal Studios Operations Group Universal Studios Theme Park (Hollywood) Universal Studios Theme Park (Florida) Spencer Gifts MCA holds an over 40 per cent interest in: Cineplex Odeon Inc.

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Company

Cineplex Odeon Corporation

Address

1303 Yonge Street Toronto, Ontario M4T 2Y9

Business

Theatre chain, motion picture production

Number of employees

2,500

Total sales

Not available

Total assets

$697,105,000

Executives

E. Leo Kolber, Chairman of the Board Allen Karp, President and Chief Executive Officer


1


U.S. affiliate Cineplex Odeon Films Inc.

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APPENDICES

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HOLLINGER INC.

H O L L IN G E R in c A m e r ic a n P u b lis h in g M n g t. S e r v ic e s In c .

C h ic a g o S u n T im e s P io n e e r P r e s s N e w s p a p e r In c . S ta r P u b lic a tio n s D a ily N e w s T h e H a r la n D a ily E n te r p r is e

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QUEBECOR INC.

Q U E B E C O R In c . Q u e b e c o r P r in tin g U S A C o r p . C u s to m D ir e c t In c . E le c t r o n ic P u b lis h in g G r o u p P r in t N o r th w e s t P u b D a ta In c . Q u e b e c o r P r in t in g A r lin g t o n H e ig h t s Q u e b e c o r P r in t in g A r g le n I n c Q u e b e c o r P r in t in g B o o k P r e s s I n c Q u e b e c o r P r in t in g B u f f a lo I n c Q u e n e c o r P r in t in g C la r k s v ille Q u e b e c o r P r in g in g D a lla s I n c Q u e b e c o r P r in t in g D ic k s o n I n c Q u e b e c o r P r in t in g E u s e y P r e s s I n c Q u e b e c o r P r in t in g F a ir f ie ld I n c Q u e b e c o r P r in t in g F e d e r a t e d I n c Q u e b e c o r P r in t in g G le n B u r n ie Q u e b e c o r P r in t in g H a le t o n I n c Q u e b e c o r P r in t in g H a w k in s Q u e b e c o r P r in t in g K in g s p o r t I n c Q u e b e c o r P r in t in g M a r t in s b u r g Q u e b e c o r P r in t in g M e m p h is I n c Q u e b e c o r P r in t in g M o d e r n I n c Q u e b e c o r P r in t in g M t M o r r is I n c Q u e b e c o r P r in t in g N a s h v ille Q u e b e c o r P r in g tin g O r la n d o Q u e b e c o r P r in t in g P e n d e ll I n c Q u e b e c o r P r in t in g P r o v id e n c e I n c Q u e b e c o r P r in t in g R ic h m o n d I n c Q u e b e c o r P r in t in g S a n J o s e I n c Q u e b e c o r P r in t in g S e m lin e I n c ( 1 ) Q u e b e c o r P r in t in g S e m lin e I n c ( 2 ) Q u e b e c o r P r in t in g S e m lin e I n c ( 3 ) Q u e b e c o r P r in t in g S h e r w o o d Q u e b e c o r P r in t in g S t C lo u d I n c S o f t w a r e M a n u f a c t u r in g D iv is io n S p e c ia lt ie s B in d e r y I n c I m a g in g S e r v ic e s NADCO

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Quebecor Inc. (cont’d...)

Quebecor Printing (USA) Holdings Quebecor Printing Semline Inc Quebecor Printing (USA) Corp. The Eusey Press Inc Federated Lithogr-Printers Holding Co Fed. Lithogr-Printers Inc. Holyoke Lithograph Inc Modern Printing & Lithography Inc Quebecor Destination Services Quebecor List Services Pub/Data Inc. Semline Inc BPCC (North Carolina) Inc Compucolor International PGI (North Carolina) Inc. Alco Gravure Ind. Inc. Pendell Printing Incorporated Custom Direct Nadco Directory Mgmt Corp. The Webb Company The Book Press Inc. Quebecor Printing Corporation Quebecor Printing Richmond Inc Quebecor Printing St Paul Inc Donohue Paper Sales Corp. Quebecor Printing Quebecor Printing

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ROGERS COMMUNICATIONS INC.

Rogers Communications Inc. TS Publications (Florida) Inc. Comprint Inc. Label Art Inc. Rogers Communications Inc., Label Art Inc. Rogers Communications Inc., Maclean Hunter Media Inc. Rogers Communications Inc., Maclean Hunter Medical Communications Group Inc. HP Publishing Company MD Publications Inc. Maclean Hunter Publishing Company Lakewood Publications Inc. Rogers Communications Inc., Presentations Magazine Rogers Communications Inc.M.H. Publishing Co. Rogers Communications Inc., M.H. West Inc. Rogers Communications Inc., Maclean Hunter Market Reports Inc. Rogers Communications Inc., Maclean Hunter Presentations Inc. Rogers Communications Inc., Transkrit Corporation Government Forms and Systems Inc. Putnam Graphic Innovations Inc.

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THE THOMSON CORPORATION

T h e T h o m s o n C o rp o ra tio n A m e ric a n B a n k e r B o n d B u y e r In s titu te fo r S c ie n tific In fo rm a tio n S e c u rity D a ta C o m p a n y In c . T h o m s o n B a n k W a tc h In c . T h o m s o n F in a n c ia l S e rv ic e s In c . In fo rm a tio n A c c e s s C o . D a ta S o u rc e s In te ro p In c . P re d ic a s ts T h o m s o n B o o k /R e fe re n c e G ro u p B a n c ro ft-W h itn e y C o B o y d & F ra s e r P u b lis h in g C o C D A In v e s tm e n t T e c h n o lo g ie s In c D e lm a r P u b lis h e rs In c . D ig itre e In c . G a le R e s e a rc h In c . H e in le a n d H e iln e P u b lis h e rs In c . M c K n ig h t M e d ic a l C o m m u n ic a tio n s M e d ic a l D e v ic e R e g is te r M u lle r D a ta C o rp o ra tio n R e s e a rc h P u b lic a tio n s In c . S o u th -W e s te rn P u b lis h in g C o T h o m s o n B a n k w a tc h In c . U T L A S In te rn a tio n a l V a n N o s tra n d R e in h o ld C o V e te rin a ry M e d ic in e P u b lis h in g C o In c . W a d s w o rth In te rn a tio n a l T h e T h o m s o n C o rp ., V a n N o s tra n d R e in h o ld T h e T h o m s o n C o rp . W a d s w o rth In c . B o o k s /C o le P u b lis h in g C o P W S -K e n t P u b lis h in g C o W a d s w o rth P u b lis h in g c o

20

The Thomson Corporation (cont’d...)

Thomson Financial Services Thomson US Inc. Thomson Business Information American Health Consultants Compu-Mark ILX Systems Inc. McKnight Medical Communications Co Medical Economics Company Inc. Micromedex Mitchell International Patient Care Communications Inc. Thomson Professional Publishing Callaghan Company Clark Boardman Co. Ltd Lawyers Cooperative Pub. Co Research Institute of America Maxwell MacMillan Professional & Business Reference Publishing Practitioners Publishing Co Sheshunoff Info. Services Inc. Taft Group Warren Gorham Lamont Jane's Information Group Thomson and Thomson

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THE SEAGRAM COMPANY

The Seagram Company Seagram Chateau & Estate Wines The Seagram Beverage Group Tropicana Products Inc Seagram's Corp R&D Joseph E Seagram & Sons Inc The Seagram Classics Wine Co Seagram Beverage Co The Seagram Spirits & Wine Group The House of Seagram Seagram Asia Pacific/Global DF The Seagram Company Ltd., Seagram Latin America Seagrams MCA Inc. MCA Motion Picture Group MCA Television Group MCA Home Entertainment Group MCA Music Entertainment Group MCA Publishing Group MCA Recreation Services Group MCA/Universal Merchandising MCA Enterprises MCA Development Universal Studios Operations Group Universal Studios Theme Park (Hollywood) Universal Studios Theme Park (Florida) Spencer Gifts Cineplex Odeon Inc. (42%)

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