Rogers acquires Shaw cable system, spectrum for $710M
Michelle Clancy | 16-01-2013
Rogers Communications and Western Canada's largest pay-TV operator Shaw have kicked off Canadian cable consolidation with a deal that will see Rogers acquire Shaw's Mountain Cablevision system in Hamilton, Ontario.
The deal also covers the acquisition of Shaw's AWS spectrum, which is beachfront property for rolling out 4G LTE mobile broadband — a video-friendly business near and dear to Rogers' heart.
"The agreements will benefit businesses and consumers across the country and fit squarely within our focused, strategic game plan," said Rogers' CEO Nadir Mohamed in a statement. "We're investing in spectrum to ensure our customers continue to enjoy the incredibly fast speeds and throughput they crave, while ensuring our continued network leadership. We're also strengthening our cable portfolio by acquiring a valuable cable business which complements our existing Ontario cable system allowing us to deliver even more value for our customers and shareholders."
The transaction also provides for Shaw's acquisition of Rogers' one-third interest in cable channel TVtropolis for around $60 million, making Shaw the sole owner. Rogers will still be able to carry the content.