It seems the deal between Shaw Communication Inc and CanWest Global Communications Corp is aiming for a win-win situation.
Before the deal, CanWest is in a restructuring process and would need at least 65 million to emerge from their current state. Once the deal is settled, Shaw would help CanWest to pay its creditors. In addition, the investment does not mean a merge between Shaw and CanWest; CanWest will operate in the same way throughout the filling. Overall, the investment from Shaw would be a boost of business confidence in stakeholders of CanWest.
So what is the gain for Shaw from the deal? Firstly, in return for the investment, Shaw will recieve 20% asset and 80%voting share from CanWest, so it has control over the business. Secondly, there are anticipations that by acquiring CanWest, Shaw will be able to rival with businesses like Rogers and Telus. Owning CanWest will allow Shaw to spread news through multiple media channels.
The final result in the Shaw-CanWest deal can not be predicted yet; there are questioning voices depite the optimistic forecast of this deal. Overall this deal will be a significant move for both Shaw and CanWest.