Shaw sells media arm to Corus for $2.65 billion
Shaw Communications is selling its media division to Corus Entertainment for $2.65 billion, dividing the Shaw telecom empire into separate media and network companies as it moves to sharpen its focus.
Analysts say the deal should help Shaw (TSX:SJR.B) fund its $1.6-billion purchase of Wind Mobile, announced in December, and positions the Calgary-based cable, Internet and satellite TV company to better compete with its rivals as it moves into the wireless market.
The sale comes at a time when the Canadian media industry is facing an uncertain future as a looming CRTC-mandated change will give customers more control over which channels are included in their TV packages and traditional media faces increasing competition from digital alternatives.
“With the previously announced acquisition of Wind and sale of Shaw Media, Shaw will be focused on delivering consumer and small business broadband communications supported by its bestin-class wireline, WiFi and wireless infrastructure,” Shaw Communications CEO Brad Shaw said in a statement.
Corus (TSX:CJR.B) will add the Global Television network and 19 specialty channels including HGTV Canada, Food Network Canada and Showcase to its portfolio, which already includes a number of other specialty TV channels as well as a network of 39 radio stations and the Nelvana animation studio.
Shaw Communications will become a large shareholder in Corus as a result of the deal, which involves both cash and shares.
Both Corus, which was spun off from Shaw in 1999, and Shaw Communications, are controlled by the Shaw family.
Corus Entertainment’s headquarters is shown in Toronto on Wednesday.