Shaw sells me­dia arm to Corus for $2.65 bil­lion

The Guardian (Charlottetown) - - BUSINESS -

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.

CP PHOTO

Corus En­ter­tain­ment’s head­quar­ters is shown in Toronto on Wed­nes­day.

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