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Monday, May 3, 2010

Shaw Buys Global

WOW!!

From The Globe and Mail


Shaw Communications Inc. said Monday it plans to buy part of CanWest Global Communications Corp.’s broadcast division from Goldman Sachs Group Inc. for $700-million, paving the way for the Western cable giant to take full control of CanWest's TV assets.

The deal comes as CanWest has been restructuring its broadcasting and publishing business under protection from creditors.

In February, Shaw won court approval to invest in the broadcast assets of a restructured CanWest, including the Global television network and some specialty channels. However, 65 per cent of the lucrative stable of specialty stations CanWest acquired from Alliance Atlantis Communications Inc. in 2007, called CW Investments Co., remained under Goldman's control.

In March, Goldman filed an appeal of the Shaw decision, with the support of private equity firm Catalyst Capital Group. This deal puts an end to that dispute with Goldman.

The Calgary-based communications company will now pay Goldman in cash and through its existing credit facility for the disputed specialty TV assets. It will also assume $815-million of net debt, valuing Monday’s agreement at about $2-billion.

The deal between the Calgary-based cable company and New York-based investment bank clears the way for Shaw to buy all of a restructured CanWest. Shaw has said it wants only CanWest's television and specialty cable TV properties.

The plan is subject to certain conditions, including CanWest creditor and court approvals. The deal also needs regulatory approvals from the Canadian Radio-television and Telecommunications Commission and the Competition Bureau.

Shaw president Peter Bissonnette said the control of content was “the number one driving force” for the company in the deal, and “key to our vision for the future.”

“Over the next decade to be successful as a distributor over many platforms we will require strong content capacity in Canada,” he said. “We believe that the marriage of content with our cable and satellite and soon to be wireless distribution network will position Shaw to be one of the leading entertainment communication companies in Canada.”

1 comment:

Mike from Vita, MB said...

I hope Shaw doesn't get rid of the Global TV channels. It is nice to have a choice of three local stations