TORONTO, Dec. 20, 2013 /CNW/ - Today, Corus Entertainment Inc. ("Corus" or "the Company") (TSX:CJR.B) announced that the Canadian
Radio-television and Telecommunications Commission ("CRTC") has approved the Company's acquisition of Historia, Séries+ and the remaining 50% of
TELETOON Canada Inc. and plans on closing the transactions at calendar
"We are pleased with the CRTC's decision and excited about the future
growth opportunities these acquisitions represent," said John Cassaday,
President and Chief Executive Officer. "Corus has established a track record for building and stewarding strong
brands as well as delivering the best possible content to audiences
With these acquisitions, Corus will own at closing 100% of Historia,
Séries+ and TELETOON Canada (which includes TELETOON, TÉLÉTOON,
TELETOON Retro, TÉLÉTOON Rétro and Cartoon Network). In April 2013,
Corus also consolidated its ownership of ABC Spark and divested its 20%
interest in Food Network Canada.
The net cash consideration for these assets is $481 million Cdn. and
will be paid for with cash on hand and existing bank lines of credit
when the transaction closes. The overall transaction is valued at a
fiscal 2013 EBITDA multiple of 9.4x and will be immediately EPS and
Free Cash Flow accretive.
Corus has established a Montreal-based management team led by Mario
Cecchini, President, Corus Média & Head of Eastern Ontario, Radio and
Television. In addition to the Quebec-based specialty services, Mr.
Cecchini will also oversee Corus' eastern Ontario radio and local
As part of the transaction, Corus has committed to invest approximately
$42 million in tangible benefits for French and English language
television, radio and film content development as well as support for
Canadian talent, training and professional development for Canadian
media, and new consumer participation initiatives.
Regarding the Company's applications to acquire the two Ottawa-based
radio stations, CKQB-FM and CJOT-FM, Corus anticipates that it will
receive a favourable decision early in the new year.
About Corus Entertainment Inc.
Corus Entertainment Inc. is a Canadian-based media and entertainment
company. Corus is a market leader in specialty television and radio
with additional assets in pay television, television broadcasting,
children's book publishing, children's animation and animation
software. The Company's multimedia entertainment brands include YTV,
Treehouse, Nickelodeon (Canada), ABC Spark, W Network, OWN: Oprah
Winfrey Network (Canada), Cosmopolitan TV, Sundance Channel (Canada),
Movie Central, HBO Canada, Nelvana, Kids Can Press, Toon Boom and 37
radio stations including CKNW AM 980, 99.3 The FOX, Country 105, 630
CHED, Q107 and 102.1 the Edge. Corus creates engaging branded
entertainment experiences for its audiences across multiple platforms.
A publicly traded company, Corus is listed on the Toronto Stock
Exchange (CJR.B). Experience Corus on the web at www.corusent.com.
This press release contains forward‐looking information and should be
read subject to the following cautionary language:
To the extent any statements made in this report contain information
that is not historical, these statements are forward‐looking statements
and may be forward‐looking information within the meaning of applicable
securities laws (collectively, "forward‐looking statements").
These forward‐looking statements related to, among other things, our
objectives, goals, strategies, intentions, plans, estimates and
outlook, including advertising, distribution, merchandise and
subscription revenues, operating costs and tariffs, taxes and fees, and
can generally be identified by the use of the words such as "believe",
"anticipate", "expect", "intend", "plan", "will", "may" and other
similar expressions. In addition, any statements that refer to
expectations, projections or other characterizations of future events
or circumstances are forward‐looking statements. Although Corus
believes that the expectations reflected in such forward‐looking
statements are reasonable, such statements involve risks and
uncertainties and undue reliance should not be placed on such
statements. Certain material factors or assumptions are applied in
making forward‐looking statements, including without limitation factors
and assumptions regarding advertising, distribution, merchandise and
subscription revenues, operating costs and tariffs, taxes and fees and
actual results may differ materially from those expressed or implied in
such statements. Important factors that could cause actual results to
differ materially from these expectations include, among other things:
our ability to attract and retain advertising revenues; audience
acceptance of our television programs and cable networks; our ability
to recoup production costs, the availability of tax credits and the
existence of co‐production treaties; our ability to compete in any of
the industries in which we do business; the opportunities (or lack
thereof) that may be presented to and pursued by us; conditions in the
entertainment, information and communications industries and
technological developments therein; changes in laws or regulations or
the interpretation or application of those laws and regulations; our
ability to integrate and realize anticipated benefits from our
acquisitions and to effectively manage our growth; our ability to
successfully defend ourselves against litigation matters arising out of
the ordinary course of business; and changes in accounting standards.
Additional information about these factors and about the material
assumptions underlying such forward‐looking statements may be found in
our Annual Information Form. Corus cautions that the foregoing list of
important factors that may affect future results is not exhaustive.
When relying on our forward‐looking statements to make decisions with
respect to Corus, investors and others should carefully consider the
foregoing factors and other uncertainties and potential events. Unless
otherwise required by applicable securities laws, we disclaim any
intention or obligation to publicly update or revise any forward
looking statements whether as a result of new information, events or
circumstances that arise after the date thereof or otherwise.
Follow CorusPR on Twitter @CorusPR
SOURCE: Corus Entertainment Inc.
For further information:
Corus Entertainment Inc.