Shaw to use $1.8B sale of media unit to fund Wind Mobile acquisition - Mobile World Live

Shaw to use $1.8B sale of media unit to fund Wind Mobile acquisition

14 JAN 2016

Canada’s Shaw Communications is set to sell its broadcasting subsidiary to Corus Entertainment for CAD2.65 billion ($1.8 billion), in a move “firmly positioning the company as a leading pure-play connectivity provider”.

The cash will be used to fund its CAD1.6 billion acquisition of Wind Mobile, announced in December last year.

Shaw will receive CAD1.85 billion in cash alongside Corus shares.

According to CEO Brad Shaw, the deals will see the company focus “on delivering consumer and small business broadband communications supported by its best-in-class wireline, WiFi and wireless infrastructure. These transactions will also enhance Shaw’s growth profile, with approximately 25 per cent of total revenue derived from growth services”.

But the stake held in Corus enables it to “participate in the significant upside potential with the creation of a powerful integrated media and content company”.

Shaw Media consists of a conventional television network Global Television and 19 “specialty channels”.

The completion of the Shaw Media sale is subject to approval by Corus’ shareholders and regulatory approvals, including from the Canadian Radio-television and Telecommunications Commission.

It expects both the sale of Shaw Media and the acquisition of Wind to close in Q3 2016.


Saleha Riaz

Saleha joined Mobile World Live in October 2014 as a reporter and works across all e-newsletters - creating content, writing blogs and reports as well as conducting feature interviews...More

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