Astral Radio shuts down online and TV classified ad division, 38 jobs affected

Published Tuesday August 19th, 2008

THE CANADIAN PRESS

MONTREAL - The radio division of Astral Media Inc. (TSX:ACM.A), is shutting down its online and television classified ad division, TATV, in a move that will impact 38 jobs.

The closure of the Astral Media Radio division, previously called Tele-Annonces, means 28 full-time jobs and 10 part-time jobs in Quebec will be eliminated.

Astral said Tuesday the company evaluated several strategies before deciding to shut down TATV but that "the growing market share of classified ads using the free Internet model, coupled with the fact that classified ads are not one of our company's core businesses, forced us to close the division."

The company said it will work with employees to help them find other employment and will provide pro-rated refunds to all existing customers who have active accounts for online or on-air classified ads.

Montreal-based Astral is Canada's largest radio broadcaster, but is also involved in specialty television channels and outdoor advertising sales.

The Montreal company's shares traded at $31.81 on the TSX, down 29 cents.

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