Acquisition ‘redefines Corus and Canada’s media landscape,’ president/CEO says
by The Canadian Press courtesy CBC News Posted: Jan 13, 2016 7:20 AM ET
As a result of the acquisition, Corus will own 45 speciality TV channels, 39 radio stations, the content studio Nelvana, at 15 conventional TV stations. (Aaron Vincent Elkaim/Canadian Press)
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Toronto-based Corus Entertainment is buying Calgary-based Shaw Media from Shaw Communications in a $2.65-billion deal, Corus said this morning.
Shaw Media includes the Global Television network and 19 specialty channels including HGTV Canada, Food Network Canada and Showcase — formerly part of the Canwest business group before it was split up.
Corus already owns a number of other specialty TV channels as well as a network of radio stations and the Nelvana animation studio.
Both companies are controlled by the Shaw family through its voting shares. Calgary-based Shaw Communications will become a large shareholder in Corus as a result of the deal, owning 40 per cent of the company and pledging to not sell off any of its stake for the first 12 months.
The Shaw family living trust has provided written commitment to Corus’ board of directors indicating its support for the acquisition, which involves both cash and shares.
“Through this transaction we are able to crystalize an attractive value for Shaw Media and realize substantial value creation for Shaw shareholders since acquiring CanWest in 2010,” said Shaw director Paul Pew, chair of a special board committee.
Shaw Communications chief executive Brad Shaw added that “we are grateful to our colleagues at Shaw Media for their contributions to Shaw’s success over the past five years.”
Shaw buying Wind Mobile
It’s the second major deal for Shaw Communications in recent weeks. The cable, internet and satellite TV company announced on Dec. 16 that it’s buying Wind Mobile in a deal worth $1.6 billion.
READ THE REST OF THE STORY HERE AT THE CBC NEWS WEBSITE
Let the cutbacks begin ….
Simply a shell game, money going from one pocket to the other. Mind you, with Corus’ current financial picture, they will most likely be taking on a sizeable debt load (as well as issuing another boatload of shares) to cover the $2.65B price.
For anybody currently working at Corus / Shaw Media, hope your resume is in order, the pink slips will be flying once this “sale” is settled later in the year.
Yes, a shell game of sorts, seeing as the controlling shares in both entities are held by the Shaw family. In part this is to clear potential regulatory hurdles and create the impression that Shaw Communications is not a vertically integrated business. The media side is now effectively removed from the cable-mobile side. Whether the CRTC buys this remains to be seen. Shaw is pretty much the last of the big family-controlled media companies in North America.
Get the resumes ready if you work at Global or Corus!
Prepare for co-location of control rooms, newsrooms, promotions and more….
Corus Vancouver wanted out of the black tower over a year ago but couldn’t afford to put two floors back the way they found them. Now, they should be able to move into the Shaw Tower rent free and fix up the West Georgia location.
Radio and TV owned by Corus leaving Shaw with only cable, internet, and wireless (Wind). Might make for a merger with Rogers cable in the future.
“…by combining with Shaw Media, Corus is also expecting to wring out $40-million to $50-million in annual cost savings within two years.”
Yeah…they won’t be doing that by ordering less paperclips and pens from Office Depot.
If I woke up to this news, I’d immediately start working on my resume.
Changes are coming.