If the agreement is approved by regulators, the deal will shake up Canada’s wireless industry as two of the country’s largest … While Rogers dominates the market for these services in eastern Canada, Shaw dominates out west, with minimal overlap between the two. Rogers Communications has agreed to buy Shaw Communications for CAD 4.50 per share, in a transaction valued at CAD 26 billion, including CAD 6 billion worth of Shaw debt. With Rogers proposing to acquire Shaw Communications in response to a shifting wireless phone and broadband networks market, speculation will renew that the Shaw family may be seeking a buyer for Corus Communications as Canadian consumers increasingly embrace Netflix and other streaming TV services. Rogers last year teamed up with U.S. cable giant Altice USA to launch an unsolicited offer for Cogeco, the Quebec-based cable giant controlled by the Audet family of Monteral. Combining Rogers and Shaw to accelerate growth in wireless broadband and network investments follows a legacy media business where Shaw dominated in western Canada and Rogers consolidated its operations in Ontario and Quebec. THE HOLLYWOOD REPORTER is a registered trademark of The Hollywood Reporter, LLC. Rogers Communications has entered into a merger with fellow Canadian telco Shaw Communications in a $26bn deal. Following the close of the transaction, Rogers will maintain a strong local employee base in Western Canada so that local teams can continue to serve local consumer, business and government customers and their communities," Rogers added in a statement as it looks to secure regulatory approval for the deal. The Shaw family is also the controlling shareholder of Corus Entertainment, a major buyer of American series from studio suppliers that has been hit with its own round of pandemic-era layoffs, especially at its Global News division. But longer term, Canadian TV media companies face either driving into the streaming arena to compete against upstart U.S. digital players, or seeing their legacy TV networks continue to lose ground amid cable-cutting and changing consumer viewing habits. Rogers Communications Inc. has signed a deal to buy Shaw Communications Inc. in a deal valued at $26 billion, including debt. As Rogers looks to expand its 5G rollout in western Canada, it has promised to invest CAN$2.5 billion in 5G networks over the next five years across Western Canada. Canada ’s Rogers Communications is buying competitor Shaw Communications in a deal worth CAD$26 billion ($20.8 billion). To enable Verizon Media and our partners to process your personal data select 'I agree', or select 'Manage settings' for more information and to manage your choices. Premium content. Rogers Communications Inc. agreed to buy rival Shaw Communications Inc. in a C$20 billion ($16 billion) deal that unites Canada’s two largest cable providers. Rogers Communications Inc. has struck a deal to acquire Shaw Communications Inc. for $20.4 billion, a takeover that will reshape the country’s telecom landscape provided it receives regulatory approval. Terms of Use | Rogers will also also take on Shaw… The deal reflects a 70 per cent premium to Shaw’s recent Class B share price. Dear Canadians, Is there anyone that thinks the Shaw/Rogers merger could be positive? AdChoices © 2021 The Hollywood Reporter, LLC. Rogers Sports & Media, the media arm of Rogers Communications, has already imposed a series of job cuts as it drives into the streaming and digital entertainment spaces. In a $26 billion trade, Rogers signs a contract to purchase Shaw. Rogers announced Monday it is offering $40.50 in cash per share for Shaw, a 69 per cent premium over closing price of Shaw shares Friday. We and our partners will store and/or access information on your device through the use of cookies and similar technologies, to display personalised ads and content, for ad and content measurement, audience insights and product development. Rogers Communications has agreed to acquire Shaw Communications in a cash deal that the firms hope to close in early 2022. Rogers-Shaw merger leaves Wind founder disappointed, but not surprised Updated 11 hours ago Police investigate after body found along Sir John A. Macdonald Parkway That takeover deal, which would have seen Altice acquire Cogeco's U.S. unit, Atlantic Broadband, while the target company's Canadian assets would have gone to Rogers, was ultimately rebuffed by Cogeco's controlling shareholder. Arguments Against the Shaw/Rogers Merger. The Shaw Family Trust, which represents Calgary's Shaw family and the controlling shareholder of Shaw Communications, has agreed to vote in favor of the merger deal. Rogers and Shaw offer cable TV and cellular phone service, with Rogers largely serving the east and Shaw largely in the west. Media analysts were quick to zero in on the proposed merger allowing Rogers to mount a national rollout of its 5G wireless offering to consumers. EMAIL ME. Rogers Communications has announced that it will purchase Shaw Communications Inc. in a C$20 billion ($16 billion) deal. The implications are massive, not for only our city and province, but our country as well. The Rogers-Shaw merger is not a done deal yet. FACEBOOK Sitemap | Rogers Communications is set to acquire rival cable giant Shaw Communications for … If you didn't hear in the news yesterday, Rogers has submitted a $26B offer to takeover Shaw Communications. Find out more about how we use your information in our Privacy Policy and Cookie Policy. This will be the ninth largest merger in Canadian history if it goes through. TWITTER Rogers will acquire … The deal, pending regulatory and shareholder approvals, will combine two Canadian cable, broadband Internet and wireless phone giants as the country heads towards a 5G rollout. Rogers-Shaw Merger Price is Fair Shaw shareholders, BCE, Telus are the big winners Morningstar 15 March, 2021 | 2:56PM. Information about your device and Internet connection, including your IP address, Browsing and search activity while using Verizon Media websites and apps. The stock soared on news that telecommunications specialist Rogers Communications agreed to acquire all outstanding shares of Shaw as part of a merger… The proposed takeover deal is expected to close in the second half of 2022 as both companies will need to answer likely anti-trust concerns from the federal government and the CRTC, Canada's TV and telecom regulator. Just seen so much bad commentary around it, there's gotta be someone who thinks this is a good thing. The companies say a merger … Here are five key things you need to know about the $26-billion merger: 1. THE DEAL Rogers will acquire Shaw’s Class A and Class B shares for $40.50 for a total of $20-billion. "We believe the transaction carries strong strategic and operational benefits to Rogers as it effectively doubles its wireline footprint and provides national scale. This is why the merger deal needs to get three approvals — at the CRTC, at Innovation Canada, and through the Competition Bureau. You can change your choices at any time by visiting Your privacy controls. Toronto-based telecom company Rogers Communications (RCI) has agreed to buy Calgary-based telecom company Shaw Communications (SJR) for $20 billion in … Conversely, will Shaw's $42.66 ABPU increase through rate increases (at some point) when the merger is complete? Rogers-Shaw merger leaves Wind founder disappointed, but not surprised. If approved, the merger … Etan Vlessing Toronto-based Rogers said it … The proposed merger of Rogers and Shaw's cable units opens the way for possible job cuts, with both companies forecasting synergies would exceed $1 billion annually within two years of closing the transaction. The CEO of Shaw Communications Inc. isn’t closing the door on a merger with Rogers Communications Inc. despite saying his company is "in a great spot." I think this is likely at some point, given Rogers has a higher ABPU (by the way, investors do not usually like it when ABPU goes down). By Roni Sianturi, 15 March, 2021. Moreover, the combined entity will be much better positioned to deploy and leverage 5G wireless technology over the medium term," Tim Casey, an analyst at BMO Capital Markets, said in a March 15 investors note. "This transaction will create Canada’s most robust wholly-owned national network, and as a result of the combined spectrum holdings and enhanced capacity, will generate more choice and competition for businesses and consumers, as well as realizing the full benefits of next generation networks for Canadians and Canada’s productivity," Rogers and Shaw said in a joint statement on Monday. | EU Privacy Preferences. The Shaw–Rogers merger has been grabbing headlines this morning, as the resulting telecom titan is to become the second-largest in Canada. Former Wind Mobile founder, Anthony Lacavera, says he was “disappointed” to hear about the Rogers-Shaw merger this week. Canadian-based telecom providers Rogers Communications and Shaw Communications agreed to combine today in a $26 billion (including debt) merger … Second; Rogers says they will add 3k net jobs in Western Canada, with 1800 Rogers Communications Inc. announced on Monday that they will be acquiring Shaw Communications Inc. in a deal worth $26 billion. “You never say ‘no,’” Brad Shaw told BNN Bloomberg Thursday in an interview when asked about the possibility of a merger ever happening. Rogers Sports & Media, Corus and Canadian TV market leader Bell Media at the Los Angeles Screenings in 2020 followed the U.S. networks in mostly renewing American dramas and comedies on their prime time schedules north of the border amid the pandemic. As part of the deal, Rogers will purchase Shaw class A shares and class B shares for CAN$40.50 (US$32.40) each, which represents a 70 percent premium to Shaw's class B share price. by ‘All the Shaw customers are going to be in play’ says professor on proposed merger of Rogers and Shaw. Explaining the move, the companies said that as … Bianca Bharti, Postmedia News ([email protected]) Published: 2 hours ago. | California Privacy Rights Rogers Canada buy deal merger shaw communications stocks at $26B for Internet 5G networks. "Shaw’s skilled workforce is integral to the success of the combined company. 7:26 AM PDT 3/15/2021 On Monday, Rogers Communications Inc. agreed to acquire its Western Canadian rival Shaw Communications Inc. for C$26 billion ($20.9 billion) including … Updated: 1 hour ago. Shaw acquired Wind Mobile in late 2015 and turned it into Freedom Mobile, part of a $1.6 billion deal. Privacy Policy | Anthony Lacavera, the founder of Wind Mobile, in 2012. Rogers Communications is set to acquire rival cable giant Shaw Communications for $26 billion (US$20.8 billion). Yahoo is part of Verizon Media. Tyson Fedor CTV News Calgary Video Journalist @CTV_TysonFedor Contact. A number of approvals are required for the deal to happen. "I think that prices most definitely are going to go up," he says of the Rogers-Shaw deal. | Do Not Sell My Personal Information The Rogers-Shaw merger would effectively combine the largest and fourth-largest players, creating a super giant with even more pricing power. The merger would combine two of Canada's largest cable and internet providers. All rights reserved. By Roni Sianturi, 15 March, 2021. Rogers Communications Inc. is set to to acquire rival Canadian cable giant Shaw Communications Inc. in a $16 billion deal (C$20 billion), the companies said Monday. Canada's Rogers Communications and Shaw Communications have announced plans to merge in a transaction valued at around $20.8 billion (CA$26 … Acquiring Shaw will allow Rogers to better compete in western Canada against Telus Corp. and BCE. The transaction includes about CAN$6 billion of debt to roll into Rogers Communications, which is controlled by the Rogers family of Toronto. Calgary's Shaw family is backing the merger deal spearheaded by the Rogers family of Toronto.