Corus Entertainment has acquired Shaw Media from Shaw Communications for $2.65 billion to be paid through a combination of cash and shares.
The transaction will give Corus ownership of all of Shaw Media’s brands, resulting in a combined portfolio including 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, President and Chief Executive Officer, 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.”
“We are confident that this transaction will create great value for our shareholders,” said Fernand Bélisle, 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.”
“We believe these two companies will form a winning combination,” said JR Shaw, Executive Chair, Shaw Communications. “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, and BBC Canada.
Shaw recently bought Wind Mobile for $1.6 billion.