The Globe and Mail reports that Shaw Communications Inc. is attempting to sell its stake in broadcaster Corus Entertainment Inc. as part of a strategy to build a war chest for expansion of its Freedom Mobile wireless network.
Shaw recently hired investment bank TD Securities Inc. to find a buyer for its 38-per-cent stake in television and radio station owner Corus, according to sources familiar with the Shaw’s plans. These sources say Shaw is shopping its Corus stake, currently worth approximately $540-million, to a list of dozens of potential buyers, with a focus on private equity funds and other deep-pocketed investors that don’t currently own a national media business in Canada.
Toronto-based Corus owns a stable of 44 specialty television channels, including the Food Network and HGTV, and 15 conventional TV stations, including the national Global TV network, along with 39 radio stations. Sources say Shaw and Corus would listen to offers for individual business lines and that Shaw would also be content to continue as a major shareholder in Corus if no buyers emerge.