Corus Entertainment to Acquire Shaw Media

TORONTO: Canada’s Corus Entertainment has made an agreement to acquire all of Shaw Media for C$2.65 billion.

The move will give Corus ownership of all of Shaw Media’s brands, resulting in a combined portfolio that includes 45 specialty television channels, 39 radio stations, digital assets, the content studio, Nelvana and 15 conventional television stations.

“This is a transformational acquisition that redefines Corus and Canada’s media landscape,” said Doug Murphy, the president and CEO of Corus Entertainment. “This game-changing transaction brings together a powerful portfolio of synergistic media assets that will solidify Corus’ position as the market leader in the highly valued women, kids’ and family segments. It will also advance our strategic priorities through investment in content creation for our own platforms, and for global markets.”

Murphy added: “The time is right to unite these two strong media companies. With the addition of Shaw Media, we will have the competitive scale, the brands, the content and the team to accelerate our growth. We are also pleased to announce that Barbara Williams, currently Executive Vice President, Broadcasting and President, Shaw Media, will join Corus in a senior leadership capacity upon the closing of the transaction. As one of the industry’s most-respected executives, Barbara will play an integral role shaping the new Corus, given her in-depth knowledge and exceptional leadership capabilities, as we bring our people and assets together.”

“We are confident that this transaction will create great value for our shareholders,” said Fernand Bélisle, the chairman of the special committee of the board of directors of Corus formed in connection with the transaction. “We are buying Shaw Media at an attractive price, financing it prudently and the transaction is immediately accretive on an earnings and free cash flow per share basis. This combination will deliver strong free cash flow which will allow the company to de-lever quickly while maintaining its current dividend.”

“We believe these two companies will form a winning combination. Their complementary mix of assets and strong management teams fit extremely well together,” added JR Shaw, executive chair of Shaw Communications Inc. “This transaction represents an exciting new chapter and allows us, as a family, to participate in what we see as a very successful future for Corus, one that will support a vibrant Canadian broadcast system.”

Shaw Media’s assets include the specialty channels Food Network Canada, HGTV Canada, DIY Network Canada, Slice, Lifetime, History Canada, H2, Showcase, National Geographic Canada, Nat Geo Wild Canada, Action, MovieTime, IFC Canada, Global News: BC1, BBC Canada, DejaView, Crime + Investigation, DTOUR and FYI. It also includes Global Television’s national conventional service with stations in Vancouver, Okanagan, Edmonton, Calgary, Lethbridge, Saskatoon, Regina, Winnipeg, Toronto, Montreal, Halifax and Saint John.