CALGARY – BUSINESS – Shaw Communications Inc. (“Shaw”) announced today that it has entered into a share purchase agreement (“SPA”) with Corus Entertainment Inc. (“Corus”) to sell 100% of its wholly owned broadcasting subsidiary, Shaw Media Inc. (“Shaw Media”), for $2.65 billion (the “Transaction”). Shaw Media consists of the conventional television network, Global Television, and 19 specialty channels, including HGTV Canada, Food Network Canada, History Television and Showcase.
“This transaction represents a significant milestone for Shaw, firmly positioning the company as a leading pure-play connectivity provider with an attractive growth profile while allowing Shaw to participate in the significant upside potential resulting from the combination of Shaw Media and Corus,” said Chief Executive Officer, Brad Shaw. “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. In combination, these transactions will also enhance Shaw’s growth profile, with approximately 25% of total revenue derived from growth services1.”
The combination of Shaw Media and Corus creates a powerful integrated media and content company with increased scale, a strong mix of media properties, meaningful synergies and best-in-class management that is extremely well positioned to succeed in the new regulatory environment. “We are excited about the prospects for Corus and the value of our ongoing stake in the new company. We fully believe that bringing together these media companies strengthens Corus’ position among its competitors and, as a combined entity, will be able to further leverage and maximize growth opportunities,” said Mr. Shaw.
“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. Furthermore, our retained equity interest in Corus will allow Shaw shareholders to participate in the upside potential resulting from the combination of Shaw Media and Corus,” said Paul Pew, Chairman of the Special Committee of the Board of Directors of Shaw formed in connection with the Transaction.
1Growth services are defined as Business Network Services, Business Infrastructure Services and WIND. Growth percentage is based on 2015 pro forma revenue (i.e. excluding Shaw Media and including WIND).
“We are grateful to our colleagues at Shaw Media for their contributions to Shaw’s success over the past five years, and for their leadership, ingenuity and insight into developing content and programming that puts the interests and needs of Canadian viewers first. Shaw’s ongoing investment in the combined company reflects our commitment and confidence in the people at Shaw Media and we look forward to participating in their future success,” said Mr. Shaw.
Doug Murphy, Chief Executive Officer of Corus, stated, “This acquisition represents a transformational transaction for Corus that positions the combined business as one of Canada’s leading media and content companies with significantly enhanced scale and growth prospects going forward. We are pleased with Shaw’s confidence in the combined business as evidenced by its pro forma ownership interest in Corus and commitment to participate in our dividend reinvestment program.”