TORONTO – Alliance Atlantis confirmed today what had been speculated about in many reports throughout the holiday season – that it is in exclusive sale talks with CanWest Global Communications.
Primarily a specialty service operator with 13 channels including Showcase, History Television, National Geographic Canada, BBC Kids, and Food Network Canada, among others, AA announced last month it was putting itself in play.
However, according to sources, CanWest and Alliance Atlantis had been talking since the summer.
Also key to the deal is the involvement of private equity firm Goldman Sachs, which CanWest apparently brought to the table to potentially purchase AA’s other main asset: 50% ownership of the popular and lucrative CSI franchise.
Both CanWest and AA issued similar releases today. "CanWest Global Communications Corp. (CanWest) today confirmed that it has entered into exclusive discussions regarding the possible purchase of Alliance Atlantis Communications Inc. (Alliance Atlantis). CanWest in conjunction with private equity firm, Goldman Sachs Capital Partners, has entered into discussions with Alliance Atlantis and its controlling shareholder Southhill Strategy Inc., which is owned by Alliance Atlantis’s executive chairman Michael MacMillan and Seaton McLean. There can be no assurance that these discussions will result in a definitive agreement," reads the CanWest release.
Alliance Atlantis’ release is nearly identical.
Expect AA to sell for north of $2 billion, possibly over $2.5 billion say analysts.
