Shaw to buy Canwest TV unit

DataxisNews

Shaw Communications Inc announced on Monday that it has agreed to buy the television operations of Canwest Global Communications for C$1.2 billion ($1.8 billion), adding cable channels such as Food Network Canada to its stable of media holdings. The agreement will include the assumption of C$815 million of debt and will give Shaw 100% of Canwest’s television unit including the over-the-air and specialty services, giving it access to key content and removing other financial claims on the assets. Jim Shaw, CEO commented on the deal: “Our view is that this gives us an opportunity to crystallize the value today, which we think is an optimal time to do that. This has given us the ability to remove the financial players. Goldman Sachs certainly was a key to be able to solve the entire problem here and we’re pleased that we were able to come to an agreement with them that was satisfactory for both of us”.
Canwest began struggling for survival soon after its rapid expansion trapped it under a C$4 billion debt load. The media empire was eventually forced to file for creditor protection for its television operations and, separately, for its newspaper arm. The sale of Canwest’s TV assets is separate from a process to sell its newspapers. The papers on the block include the National Post and Vancouver Sun.


http://www.dataxisnews.com