Rogers Communications (RCI) was up 7% yesterday on the news that its acquisition of Bell’s 37.5% stake in MLSE closed, bringing its total ownership to 75% and growing the financial contribution of the media segment.

The jump builds on RCI’s outperformance since it sold off 6% on leverage concerns following the $11B, 12-year extension of its existing NHL broadcasting rights…

… as Blackstone’s $7B equity investment calmed investors alongside the outlook for a partial monetization event for the sports media business.

While bringing in equity partners is the near-term plan, Rogers is able to acquire the remaining 25% stake in MLSE from Kilmer Sports in 2026, making a full carve-out a possibility in the medium term.

Such an event would tell the market what RCI’s remaining stake in the would-be media entity is worth, which could drive a multiple re-rate off the lows - with sale proceeds directed towards leverage reduction, growth, and buybacks.

With sports team valuations continuing to climb a potential IPO could be well-received, though the reabsorption of Telus International (TIXT) by Telus (T) has likely hurt investor appetite for telecom spinouts in the near-term.