Shaw Media, under Shaw Communications, will be sold to Corus Entertainment for a total price of $2.65 billion. The money will be used to "help fund the telecom company's purchase of Wind Mobile."
Shaw Media is composed of the Global Television network and 19 other specialty channels to include HGTV Canada, Food Network Canada and Showcase. On the other hand, Corus will be hadning 45 specialty TV channels, 39 radio stations, 15 conventional television station, and the Nelvana animation studio, among others, after the deal.
"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," Paul Pew said. Pew is the Shaw director and 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."
On the other hand, Corus CEO Doug Murphy said the purchase of Shaw Media "positions the combined business as one of Canada's leading media and content companies with significantly enhanced scale and growth prospects going forward."
It's the second major deal for Shaw Communications in the past few weeks. It was on December that the cable, Internet and satellite TV company made an official announcement that it will be buying Wind Mobile in a deal worth $1.6 billion.
The sale of Shaw Media to Toronto-based Corus will move about $1.85 billion in cash to Shaw Communications, which will also receive about 71 million Corus non-voting class B shares.
One the deal is done and closed, which is expected to be in the third quarter, Shaw Communications will now own about 39 percent of the equity in Corus. As of the present, Shaw and Corus are controlled by the Shaw family through a voting share.
"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 best-in-class wireline, WiFi and wireless infrastructure," Brad Shaw said in a joint statement.
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