You will be redirected back to your article in seconds

Shaw’s takeover dents CanWest profits

Benefits package, restructuring swallow $200 mil

MONTREAL — Canuck broadcaster and cabler Shaw Communications has revealed more about the costs tied to its $2 billion takeover of rival broadcaster CanWest Global Communications in May.

On Thursday, Calgary-based Shaw reported that it paid $140 million for a benefits package, mostly to Canadian producers. Broadcast regulator the Canadian Radio-Television and Telecommunications Commission always demands such pay-outs following major takeovers.

Shaw also had to pay another $59 million for restructuring costs associated with the takeover, including lawyers fees, consultants’ fees and buy-outs to staffers let go as a result of the transaction.

Mainly due to these charges, Shaw reported a huge dip in its profit for the first quarter, with earnings dropping to $20 million, way down from $114 million a year earlier.

By acquiring CanWest’s TV assets, Shaw picked up the Global TV Network and a slew of cable channels including Showcase, History Television and The Food Network (Canada). Those assets are now housed under the subsidiary Shaw Media.

Shaw also announced Thursday that it will roll out its mobile phone service three months later than expected, likely in early 2012. That delay may be because Laurence Cooke, head of the wireless phone division, left Shaw suddenly last week just six months after being hired.

More TV

  • TV News Roundup: 'Knightfall' Grows by

    TV News Roundup: 'Knightfall' Premiere Grows by 71 Percent in Delayed Viewing

    MONTREAL — Canuck broadcaster and cabler Shaw Communications has revealed more about the costs tied to its $2 billion takeover of rival broadcaster CanWest Global Communications in May. On Thursday, Calgary-based Shaw reported that it paid $140 million for a benefits package, mostly to Canadian producers. Broadcast regulator the Canadian Radio-Television and Telecommunications Commission always […]

  • Tax Plan Strikes Fear Among Below

    Hollywood's Below-the-Line Workers Anxious About New Tax Plans

    MONTREAL — Canuck broadcaster and cabler Shaw Communications has revealed more about the costs tied to its $2 billion takeover of rival broadcaster CanWest Global Communications in May. On Thursday, Calgary-based Shaw reported that it paid $140 million for a benefits package, mostly to Canadian producers. Broadcast regulator the Canadian Radio-Television and Telecommunications Commission always […]

  • Steve Edwards Good Day LA

    Veteran Anchor Steve Edwards Out at 'Good Day L.A.'

    MONTREAL — Canuck broadcaster and cabler Shaw Communications has revealed more about the costs tied to its $2 billion takeover of rival broadcaster CanWest Global Communications in May. On Thursday, Calgary-based Shaw reported that it paid $140 million for a benefits package, mostly to Canadian producers. Broadcast regulator the Canadian Radio-Television and Telecommunications Commission always […]

  • Rupert Murdoch Bob Iger Disney Fox

    Disney Nearing Finish Line With 21st Century Fox as Comcast Bows Out of Acquisition Hunt

    MONTREAL — Canuck broadcaster and cabler Shaw Communications has revealed more about the costs tied to its $2 billion takeover of rival broadcaster CanWest Global Communications in May. On Thursday, Calgary-based Shaw reported that it paid $140 million for a benefits package, mostly to Canadian producers. Broadcast regulator the Canadian Radio-Television and Telecommunications Commission always […]

  • RACHEL-BROSNAHAN Variety Facetime Interview

    'Marvelous Mrs. Maisel' Star Rachel Brosnahan: 'I Would Be So Traumatized If I Did My Own Standup'

    MONTREAL — Canuck broadcaster and cabler Shaw Communications has revealed more about the costs tied to its $2 billion takeover of rival broadcaster CanWest Global Communications in May. On Thursday, Calgary-based Shaw reported that it paid $140 million for a benefits package, mostly to Canadian producers. Broadcast regulator the Canadian Radio-Television and Telecommunications Commission always […]

  • Kenya Barris Alec Baldwin

    ABC Gives Straight-to-Series Order to Comedy From Kenya Barris, Alec Baldwin, Julie Bean

    MONTREAL — Canuck broadcaster and cabler Shaw Communications has revealed more about the costs tied to its $2 billion takeover of rival broadcaster CanWest Global Communications in May. On Thursday, Calgary-based Shaw reported that it paid $140 million for a benefits package, mostly to Canadian producers. Broadcast regulator the Canadian Radio-Television and Telecommunications Commission always […]

  • Golden Globe Nominations: Good News and

    Golden Globes Nominations: At Least It Was a Good Year for Strong Female Roles

    MONTREAL — Canuck broadcaster and cabler Shaw Communications has revealed more about the costs tied to its $2 billion takeover of rival broadcaster CanWest Global Communications in May. On Thursday, Calgary-based Shaw reported that it paid $140 million for a benefits package, mostly to Canadian producers. Broadcast regulator the Canadian Radio-Television and Telecommunications Commission always […]

More From Our Brands

Access exclusive content