Shaw and Corus May Abandon Merger Hopes Following CRTC's Block of Bell-Astral Deal

Posted by Techvibes NewsDesk

Shaw Communications and Corus Entertainment this week downplayed speculation that the two companies would merge. The rumour of the two joining forces more intimately surfaced earlier this year, but after the Canadian Radio-television and Telecommunications Commission blocked Bell's $3 billion acquisition of Astral Media, it's become a bad time to attempt such a move. 

“We realize there’s some value and synergies with Corus,” Brad Shaw, chief executive officer of Shaw, said during an earnings call Thursday. “[But] Shaw’s pretty focused on what we need to do. Overall we’re really pleased with how our media division has performed.”

A merger isn't a huge rush for Shaw anyway. The Shaw family already controls Toronto-based Corus, which operates a variety of television channels and radio stations.

If Shaw were to attempt a merger, the odds of defeat would certainly be lower than they were for Bell. If Bell and Astral combined, Bell's media unit would hold a staggering 42.7% of the market. A Shaw Media and Corus combination would account for 30%—still dangerously high, but nowhere near as lethal.

Bell has until January 15 to win an appeal against the CRTC's decision. Otherwise, Astral becomes free to sell itself to another company. And we already know at least one Canadian telco is lying in wait.

Photo: Jeff McIntosh, The Canadian Press

Company:
Shaw Communications
Website:
http://www.shaw.ca
Location:
Vancouver, British Columbia, Canada

Shaw has experienced rapid and successful growth within the cable, satellite and telecommunications industries over the last several decades. With this growth, Shaw has created and acquired a number of companies focused on delivering high-quality products and services to approximately 3.0 million customers in Canada. more

The Canadian Radio-television and Telecommunications Commission (CRTC) is an independent public organization that regulates and supervises the Canadian broadcasting and telecommunications systems. The CRTC does not regulate newspapers, magazines, cell phone rates, the quality of service and business practices of cell phone companies, or the quality and content of TV and radio programs. As an independent... more

Company:
Bell Media Inc.
Website:
http://www.bellmedia.ca
Location:
Toronto, Ontario, Canada

Bell Media is Canada’s premier multimedia company with leading assets in television, radio and digital. With passion and an unrelenting commitment to excellence, Bell Media entertains, informs and inspires Canadians. Bell Media owns 28 conventional stations, including CTV, Canada’s #1 television network and lead broadcaster of the London 2012 Olympic Games, and owns and operates 29 specialty channels, including... more


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Techvibes NewsDesk

Techvibes NewsDesk

Techvibes is Canada's leading technology media property.Founded in 2002, Techvibes covers technology and business news that impacts Canadians. We combine breaking local news with international coverage to deliver a unique balance of insight and information. The Techvibes Newsdesk covers a broad beat and publishes general news stories. If you have a story you would like covered, email... more



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