Corus Entertainment has announced a deal to acquire all of Shaw Media’s assets from Shaw Communications in a deal worth CAD$2.65 billion (US$1.76 billion).
The transaction will give Corus ownership of all of Shaw Media’s brands, including specialty channels like Food Network Canada, HGTV Canada, Slice and History Canada. It also includes Global Television’s national conventional service with stations in various Canadian cities, including Vancouver, Okanagan, Edmonton and Calgary, among others.
Corus and Shaw’s combined portfolio will include 45 specialty television channels, 39 radio stations, digital assets, the content studio Nelvana and 15 conventional television stations.
Barbara Williams , executive VP of broadcasting and president at Shaw Media, will move to Corus “in a senior leadership capacity” pending the deal closing. Her specific role is as yet unclear, but a release notes she will play an “integral role shaping the new Corus.”
The rest of the executive team for the combined company will be announced when the deal is finalized, according to the release.
“This is a transformational acquisition that redefines Corus and Canada’s media landscape,” said Doug Murphy, president and CEO of Corus Entertainment, in a release on the deal. Shaw Communications Inc. will also hold 39% of Corus’ shares following the closure of the deal.
According to media reports, the deal is expected to yield annual cost savings of between $40 million-$50 million over two years. At press time, there has been no word or confirmation of potential redundancies to result from the acquisition.
“This is a pivotal transaction that will create one of Canada’s leading integrated media and content companies, with the scale and media assets to succeed in the new regulatory environment,” said Brad Shaw, CEO of Shaw Communications Inc. “Our significant investment in the new Corus demonstrates our commitment to the success of this powerful combination.”
The acquisition is subject to approval from the CRTC, as well as Corus shareholders. The deal is currently expected to close at the end of the third quarter of fiscal 2016.
Corus and Shaw Media combined generated $1.9 billion in revenue in fiscal 2015.
(From Playback, with files from realscreen)