TORONTO – According to a report this evening in the Globe and Mail, Shaw Communications is trying to sell all of its interest in Corus Entertainment.
The report (subscription) says the company recently hired TD Securities to find a buyer for its 38% stake in the broadcaster, valued at $540 million. The story says Shaw needs the money to further build its Freedom Mobile wireless network.
The Globe story also says the company and the Shaw family, who owns control of both entities, are also trying to sell its controlling voting shares as well, which would mean the entire company is up for grabs.
While the report says Shaw is focused on a sale to private equity funds or other investors who don’t have interests in radio, TV, animated content and books in Canada, other Canadian media companies are bound to have an interest in the 40+ English and French specialty channels (like History, W, and Showcase), 15 Global TV stations, 39 radio stations, animated content maker Nelvana (Franklin, Beyblade), book publisher Kids Can Press and animation creation software developer Toon Boom.
The usual suspects could be:
Rogers Communications (No competitive or regulatory concerns on the TV side, but some radio stations would have to be divested in a merger. However RCI leadership have said they are disinterested in taking on any more media.)
Stingray Digital (Montreal-based music and media company has been quickly growing via a number of acquisitions, the most recent of which was Newcap Radio. There would be no regulatory or competitive hurdles on the TV side, but assuming the $500 million Newcap deal gains all the required approvals, some radio stations would likely need to be sold if it then bought Corus.)
Bell Media (Leadership there would certainly embrace the deal, but given the Competition Bureau wouldn’t even let Bell have two of Corus’ specialty services, it’s impossible to see how this could happen.)
Quebecor Media (There would be regulatory and competitive concerns on the French TV side, but a sale to QMI could make sense. However, QMI has not fared well with past moves into media outside its home province.)
Jim Pattison Group (Privately-held western conglomerate which owns some regional TV and radio stations in B.C. and Alberta would be making a huge leap in size and vision with such a transaction.)
However, a private equity player could purchase the whole thing and then later spin off certain assets to other media companies at a tidy profit.
