Shaw Communications is selling its media division to Corus Entertainment, the parent firm of 680 CJOB for $2.65 billion.
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Shaw Media consists of one of Canada’s largest conventional TV networks and 19 specialty channels, including HGTV Canada, Food Network Canada and History Television.
Shaw Communications will get about $1.85 billion in cash and 71 million class B shares of Corus, the companies said on Wednesday.
“This is a significant milestone that positions us as a leading pure-play connectivity company”, said Shaw chief exec Brad Shaw.
Combined Shaw Media and Corus employ more than 4,000 people and there could be possible job reductions as a result of this deal.
Last month, Shaw announced plans to purchase wireless carrier Wind Mobile in a deal worth $1.6 billion.
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Corus was originally formed from a split of media assets from Shaw in 1999. Total net income was $41.3 million, down from 51.9 million in the comparable period. The deal is expected to close by the third quarter of 2016.
