Shaw Media

Shaw Media, Inc.
	File:Shaw Media Logo 2012.png Final logo utilized between 2012 and 2016
Company type	Division
Industry	Mass media
Predecessor	Western International Communications; Canwest Global; Alliance Atlantis
Founded	October 27, 2010; 16 years ago
Defunct	Template:End date and age
Fate	Acquired by Corus Entertainment
Headquarters	Toronto, Ontario, Canada
Area served	Canada
Parent	Shaw Communications

Shaw Media, Inc. functioned as the television broadcasting arm of Shaw Communications. It controlled the nationally broadcast Global Television Network through 13 stations and operated 19 specialty channels, including notable outlets such as Slice, HGTV Canada, Showcase, Food Network Canada, and History. These assets were originally part of the former Canwest broadcasting portfolio. In April 2016, sister company Corus Entertainment acquired these media properties.

Origins as Canwest Global

In 1974, a consortium led by Israel Asper purchased the assets of KCND-TV, a station based in Pembina, North Dakota, relocating it to Winnipeg where it was relaunched as the independent station CKND-TV. Asper's enterprise, known as Canwest, eventually secured full ownership. Shortly thereafter, Asper became involved in acquiring CKGN-TV along with partners, which formed the Ontario-wide network later branded as the Global Television Network. By 1985, Canwest had assumed majority control, marking it as the first significant Canadian broadcaster headquartered in Western Canada.

Canwest pursued growth by acquiring independent television stations across Canada and marketed this collection under the name "Canwest Global System." In 1997, it took control of CKMI-TV in Quebec City, a CBC affiliate, and established rebroadcast transmitters in Montreal and Sherbrooke. On August 18 of that year, CKMI ended its affiliation with CBC and Canwest rebranded its stations collectively as "The Global Television Network." Throughout the 1990s, Global secured Canadian broadcast rights to prominent U.S. programs such as Cheers, Friends, and Frasier.

On the international front, Canwest invested in media outlets located in New Zealand, Ireland, and Australia but eventually divested these holdings. The company went public on the Toronto Stock Exchange in 1991 and later listed on the New York Stock Exchange in June 1996.

To enhance its presence in Alberta, Canwest acquired broadcasting assets from Western International Communications in 2000. This acquisition expanded its western footprint and introduced a second over-the-air service known as CH. That same year, Canwest purchased the Southam newspaper chain from Conrad Black to pursue a strategy focused on media convergence.

Due to its strong terrestrial network foundation, Canwest initially hesitated to invest heavily in specialty channels. In 1999, it attempted to gain full ownership of NetStar Communications—which owned TSN—but this effort was blocked by U.S. partner ESPN. Subsequently, ESPN allied with competing broadcaster CTV.

By 2002, Canwest’s substantial interest-bearing debt consumed most of its operating income; by 2007 its bonds had been downgraded to junk status. In October 2005, Canwest spun off its Canadian newspaper division through an IPO trust that sold a 25.8% stake for C$550 million while incurring $850 million in long-term debt; this stake was repurchased in November 2008 for $495 million.

In 2007, Canwest partnered with Goldman Sachs to acquire Canadian producer and broadcaster Alliance Atlantis Communications, gaining control over its specialty channels while Goldman Sachs retained or resold other assets.

Company executives advocated before the Canadian Radio-television and Telecommunications Commission for fee-for-carriage regulations requiring cable and satellite providers to pay broadcasters for signals without transferring fees to subscribers—a regulatory stance later adopted.

The financial crisis of 2008 exacerbated Canwest’s debt challenges; although operations before taxes and interest yielded C$197 million profit in 2009, net losses were recorded during 2008-09. On August 31, 2009, Canwest ceased operations of its secondary system E!, divesting or closing multiple stations.

On September 24, Canwest announced plans to sell its majority stake (50.1%) in Australian Ten Network Holdings for A$680 million to reduce over C$3.8 billion in debt. This transaction eliminated C$582 million of debt associated with Australian operations. Goldman Sachs accused management of "fraudulent" alterations prior to creditor protection filings related to this sale.

On October 6, 2009, facing liabilities totaling approximately C$4 billion across radio, television broadcasting, and publishing assets worldwide, Canwest filed for creditor protection under the Companies' Creditors Arrangement Act. A recapitalization agreement was reached with lenders pending regulatory clearance; hedge funds West Face Capital, GoldenTree Asset Management, and Beach Point Capital Management would assume majority ownership while existing shareholders—including the Asper family—would retain roughly a 2.3% stake with additional capital commitments anticipated.

By early 2010, bond prices improved markedly as distressed-debt investors adjusted their positions.

In February 2010, Golden Tree Asset Management LP challenged its exclusion from an auction process involving Canwest Limited Partnership.

During restructuring proceedings, subsidiaries such as Canwest Media Inc., The National Post Company, and Canwest Television LP filed for creditor protection; specialty channels operated jointly with partners were exempted. Trading of shares on the TSX was suspended.

While Canwest maintained that restructuring would enhance competitiveness going forward, analysts predicted potential asset sales or a breakup due to differing creditor groups for publishing divisions.

In February 2010, Shaw Communications agreed to acquire an 80% voting interest and a 20% equity stake in the reorganized entity subject to regulatory approval; newspapers were sold separately to Postmedia Network. The Asper family alongside Goldman Sachs and Catalyst submitted a competing $120 million bid; however, Shaw secured court approval on February 25 with a minimum investment of $95 million for equity and voting control.

Following court mediation efforts, Shaw amended its agreement to purchase all broadcasting operations including Goldman Sachs’ share; settlement agreements with creditors and shareholders were approved by Ontario Superior Court on June 23, Competition Bureau on August 13, and finalized by CRTC on October 22 with closing completed in October 2011. Subsequently delisted from the TSX and renamed before ceasing operations under its former identity; Shaw consolidated these assets into Shaw Media.

As Shaw Media

The division adopted the Shaw Media name, resurrecting a brand formerly associated with Shaw’s media assets prior to 1999, before those holdings were separated into Corus Entertainment. Although both entities were under the Shaw family’s control, Corus and Shaw Media functioned as distinct organizations with independent management teams.

On May 12, 2011, Shaw Media transferred ownership of BBC Kids to the government of British Columbia through the provincial public broadcaster Knowledge Network.

Paul W. Robertson, who had led Shaw Media as president since its founding, passed away from cancer at age 59 on September 2, 2014. Barbara Williams was appointed as his successor.

Corus Entertainment revealed on January 13, 2016, its plan to purchase Shaw Media for $2.65 billion as part of a corporate restructuring aimed at financing Shaw’s acquisition of Wind Mobile. The Canadian Radio-television and Telecommunications Commission (CRTC) gave its approval on March 23, 2016. Given that both companies were ultimately owned by JR Shaw, the transaction was classified as a corporate reorganization and thus exempt from tangible benefits requirements and regulatory concerns regarding media ownership concentration. Following the acquisition, Shaw Media was rebranded as Corus Media Holdings, Inc. on September 1, 2016.

Operations

Shaw Media managed a portfolio comprising twenty specialty channels, two community stations, and one pay-per-view service. Notable channels included Slice, HGTV Canada, Showcase, Food Network Canada, National Geographic Channel, Lifetime, BBC Canada, History, and H2.

The Global Television Network operated through thirteen stations located in:

External links

Shaw Media - Canadian Communications Foundation