Corus buys Shaw Media

"Toronto-based Corus Entertainment is buying Shaw Media from Shaw Communications in a $2.65-billion deal. The move shuffles ownership of 19 specialty TV channels including Global, Food Network Canada, HGTV Canada, HISTORY, Slice, National Geographic Channel and Showcase between two companies that are controlled by the Shaw family. Corus also owns a network of radio stations and the Nelvana animation studio." (Source: CBC)

MaryJane Rabier, Assistant Professor in Accounting, Desautels Faculty of Management, McGill University

"Given that the new CRTC rules will significantly change the way television channels are packaged and sold to consumers, a merger between these two broadcasting companies makes sense. What makes the outlook of this merger more promising is the fact that they are both owned by the Shaw family, which may limit the risk that Corus is getting a bad deal." —MaryJane Rabier

She is an expert in mergers and acquisitions and earnings management.

maryjane [dot] rabier [at] mcgill [dot] ca