Shaw buys Canwest Broadcasting for $2.0 Billion

Shaw Communications said today that it has entered into a deal to acquire 100% of the over-the-air and specialty television businesses of Canwest Global Communications Corp. for approximately $2.0 billion,.

CanWest’s broadcasting assets include the Global Television Network and eighteen specialty cable channels including, HGTV, Mystery TV, National Geographic Channel, Showcase, History and TVTropolis.

Currently Shaw controls seventeen digital specialty TV stations and almost forty radio stations across Canada through its majority ownership of Corus Entertainment.

The deal will see Shaw pay $700 to Goldman Sachs for their interest in the CanWest Media group, $478 million to various CanWest creditors an assume $815 million of CanWest debt.

“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 in a written statement.

The Transaction is subject to regulatory approvals from the Canadian Radio-television and Telecommunications Commission (“CRTC”) and the Competition Bureau.

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Comments

2 Responses to “Shaw buys Canwest Broadcasting for $2.0 Billion”
  1. Jim R says:

    I hope it is a requirement for Shaw to maintain Global’s high definition OTA broadcasts. Since Shaw is a cable company there is an obvious conflict of interest here.