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Shaw to buy CanWest TV assets for $2 bil
Tuesday May 04th 2010In a deal that creates a new broadcasting powerhouse in Canada, Shaw Communications announced Monday that it is shelling out around $2 billion to take over the TV assets of ailing media company CanWest Global Communications.
The agreement gives Calgary-based Shaw control of one of the country’s main TV networks, Global, and a slew of cable channels, including HGTV, Showcase and History Television.
Shaw struck a deal to buy a stake in CanWest for $94 million in February but Shaw became mired in a conflict with Goldman Sachs, which owns a majority stake in CanWest’s 18 cable channels. Goldman Sachs had that stake because it helped CanWest finance the acquisition of broadcaster Alliance Atlantis three years ago.
The dispute went to arbitration and the two sides hammered out a deal in recent days. Shaw will pay Goldman Sachs
$692 million for its stake in CanWest’s cable channels.
Shaw will also take over $806 million of debt held by CW Media, the CanWest subsidiary that owned the cable channels.
“We are pleased to announce that we have come to an agreement with all constituent parties involved in a restructured CanWest, including Goldman Sachs, and are excited about the opportunity to acquire the entire company now,” said Shaw CEO Jim Shaw.
Until this acquisition, Shaw was first and foremost a cable operator. This now turns it into one of the country’s top broadcasters, ready to battle it out with CTVglobemedia and Rogers, which owns the City-tv channels.
CanWest filed for bankruptcy protection in October. Former CanWest CEO Leonard Asper also had been bidding to buy back the company his father Izzy Asper founded but that bid — backed by Catalyst Capital Group — is now dead.
Source: Variety
Front Page, Industry News
Shaw to buy CanWest TV assets for $2 bil
Tuesday May 04th 2010In a deal that creates a new broadcasting powerhouse in Canada, Shaw Communications announced Monday that it is shelling out around $2 billion to take over the TV assets of ailing media company CanWest Global Communications.
The agreement gives Calgary-based Shaw control of one of the country’s main TV networks, Global, and a slew of cable channels, including HGTV, Showcase and History Television.
Shaw struck a deal to buy a stake in CanWest for $94 million in February but Shaw became mired in a conflict with Goldman Sachs, which owns a majority stake in CanWest’s 18 cable channels. Goldman Sachs had that stake because it helped CanWest finance the acquisition of broadcaster Alliance Atlantis three years ago.
The dispute went to arbitration and the two sides hammered out a deal in recent days. Shaw will pay Goldman Sachs
$692 million for its stake in CanWest’s cable channels.
Shaw will also take over $806 million of debt held by CW Media, the CanWest subsidiary that owned the cable channels.
“We are pleased to announce that we have come to an agreement with all constituent parties involved in a restructured CanWest, including Goldman Sachs, and are excited about the opportunity to acquire the entire company now,” said Shaw CEO Jim Shaw.
Until this acquisition, Shaw was first and foremost a cable operator. This now turns it into one of the country’s top broadcasters, ready to battle it out with CTVglobemedia and Rogers, which owns the City-tv channels.
CanWest filed for bankruptcy protection in October. Former CanWest CEO Leonard Asper also had been bidding to buy back the company his father Izzy Asper founded but that bid — backed by Catalyst Capital Group — is now dead.
Source: Variety
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Front Page, Industry News
Shaw to buy CanWest TV assets for $2 bil
Tuesday May 04th 2010In a deal that creates a new broadcasting powerhouse in Canada, Shaw Communications announced Monday that it is shelling out around $2 billion to take over the TV assets of ailing media company CanWest Global Communications.
The agreement gives Calgary-based Shaw control of one of the country’s main TV networks, Global, and a slew of cable channels, including HGTV, Showcase and History Television.
Shaw struck a deal to buy a stake in CanWest for $94 million in February but Shaw became mired in a conflict with Goldman Sachs, which owns a majority stake in CanWest’s 18 cable channels. Goldman Sachs had that stake because it helped CanWest finance the acquisition of broadcaster Alliance Atlantis three years ago.
The dispute went to arbitration and the two sides hammered out a deal in recent days. Shaw will pay Goldman Sachs
$692 million for its stake in CanWest’s cable channels.
Shaw will also take over $806 million of debt held by CW Media, the CanWest subsidiary that owned the cable channels.
“We are pleased to announce that we have come to an agreement with all constituent parties involved in a restructured CanWest, including Goldman Sachs, and are excited about the opportunity to acquire the entire company now,” said Shaw CEO Jim Shaw.
Until this acquisition, Shaw was first and foremost a cable operator. This now turns it into one of the country’s top broadcasters, ready to battle it out with CTVglobemedia and Rogers, which owns the City-tv channels.
CanWest filed for bankruptcy protection in October. Former CanWest CEO Leonard Asper also had been bidding to buy back the company his father Izzy Asper founded but that bid — backed by Catalyst Capital Group — is now dead.
Source: Variety
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