Shaw Communications to buy control of Canwest, pay off its creditors

[Dusty Ayres]

TORONTO - Canwest Global Communications has struck a deal that will see Global TV, Canada's second-largest private television network, and a handful of lucrative specialty channels move under the control of Western Canadian cable giant Shaw Communications.

Calgary-based Shaw, owner of Shaw Cable and the Shaw Direct satellite TV service, said Friday it has arranged to buy control of the broadcasting assets of a restructured Canwest Global Communications Corp. (TSXV: CGS.V). It has also agreed to help Canwest pay back creditors as it restructures to deal with a mountain of debt.

While a price tag hasn't been attached to the deal, some industry observers expect Shaw to have negotiated a discount, considering that Canwest has been struggling to restructure its operations, which also include a stable of daily newspapers slated to be sold separately.

Jim Shaw, president and CEO of the diversified communications company founded by his father J.R. Shaw, issued a statement that the restructuring will result in Canwest as a "pure play" Canadian broadcaster.

"We are excited about the investment and gaining effective control of one of the premier broadcasters and owners of content in the Canadian broadcasting industry at a reasonable valuation," Shaw said.

"We believe that Shaw's investment results in a number of benefits to the broadcasting system, including an ability to strengthen local programming, ensure the ongoing viability of the second-largest private conventional television network in Canada and sustain a dynamic and competitive television market."

Shaw Communications to buy control of Canwest, pay off its creditors

 

[Hunter X]

Re: Shaw Communications to buy control of Canwest, pay off its credito

This is pretty huge, especially with the recent "Save Local TV"/"Stop the TV Tax" battle between networks like CTV, CBC, CityTV and Global and cable companies like Shaw. I think Shaw was actually the only major cable or satellite company in Canada left that didn't also own a Canadian network.

BellGlobeMedia owns both Bell and CTV/A Channel, Rogers owns Rogers Cable and CityTV, and now Shaw will be associated with Global. The only one left is CBC, but they're a special case.

 

[Dusty Ayres]

Re: Shaw Communications to buy control of Canwest, pay off its credito

This is pretty huge, especially with the recent "Save Local TV"/"Stop the TV Tax" battle between networks like CTV, CBC, CityTV and Global and cable companies like Shaw. I think Shaw was actually the only major cable or satellite company in Canada left that didn't also own a Canadian network.

BellGlobeMedia owns both Bell and CTV/A Channel, Rogers owns Rogers Cable and CityTV, and now Shaw will be associated with Global. The only one left is CBC, but they're a special case.

My hope is that the channels owned by Canwest that are now owned by Shaw (Showcase, Showcase Action, Showcase Diva, but tragically not Scream [now called Dusk and owned by Corus] and the History Channel will be restored back to what they were as when they were owned by Alliance Atlantis, and also that Global will become a better network than it is now-one can only hope. As it is now, Global is a mouthpiece for the Tories and the people who support the Afghanistan War and the Israeli side in the current infatida. No wonder Peter Newman left.

Actually, the company in question you were thinking of is called CTVGlobemedia not BellGlobemedia, Hunter X.

 

[23skidoo]

Re: Shaw Communications to buy control of Canwest, pay off its credito

Considering some of the other potential buyers that could have come in, this is probably a best-case scenario. And Canwest gets to stay Western Canadian-based rather than being controlled from Toronto or Montreal like the others.

Alex

 

[eastman23]

Re: Shaw Communications to buy control of Canwest, pay off its credito

Hahaha... this is hilarious.

Poor Asper family, what are they going to do now? I guess they'll just have to drown their sorrows by looking after all the taxpayer money we've given them to build the Human Rights Museum and buy the Blue Bombers.

 

[Hunter X]

Re: Shaw Communications to buy control of Canwest, pay off its credito

Actually, the company in question you were thinking of is called CTVGlobemedia not BellGlobemedia, Hunter X.

Ah yes, you're right. I'm still stuck back in 2006, apparently.

 

[DBR]

Re: Shaw Communications to buy control of Canwest, pay off its credito

Interesting, indeed. I suppose this this will quiet down the Shaw take over rumours for a while, but I still think another major play in the industry is yet to come and the Shaw brand will be marketing Blackberries and IPhones.

 

[23skidoo]

Re: Shaw Communications to buy control of Canwest, pay off its credito

Interesting, indeed. I suppose this this will quiet down the Shaw take over rumours for a while, but I still think another major play in the industry is yet to come and the Shaw brand will be marketing Blackberries and IPhones.

Just as long as Quebecor/Sun Media - one of the rumored companies interested in Canwest - keeps their hands off I'm happy, especially the newspapers.

Alex