Corus says Shaw purchase 'game changing' in advertising marketplace
Offer still needs regulatory and shareholder approval
The CEO of Corus Entertainment says its purchase of Calgary-based Shaw Media will better allow it to compete in the $3.2-billion advertising marketplace.
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"We are very excited about our game changing announcement today," Doug Murphy said at a news conference Wednesday.
Toronto-based Corus Entertainment announced early Wednesday it was purchasing Shaw Media for $2.65 billion, giving Corus media empire status with 45 specialty TV channels and more than a dozen regular ones, pending regulatory and shareholder approval.
Murphy said the purchase will allow Corus to compete more effectively with non-regulated services.
He didn't mention any services by name, but television broadcasters are facing increasingly stiff competition by online streaming services such as Netflix.
"This really sets up a great opportunity for us to bring scale to bear, to compete much more effectively in the advertising economy, that big $3.2-billion marketplace," Murphy said.
Shaw will get a cash infusion to improve their cable television, internet and wireless distribution network.
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Murphy said the deal came together recently.
"We had an opportunity, it was a thorough and disciplined process to make sure it represented value to our shareholders," he said.
Murphy said the deal will allow the company to increase advertising across channels and platforms more effectively.
How the purchase might affect employment levels was not addressed in the new conference.
Murphy said the goal is to have shareholders on board by March and regulatory approval shortly after.