All That's Needed Is CRTC Approval
The business world has been buzzing of late speculating that CanWest Global would be taking over Alliance Atlantis and it has just been announced that a $2.3B. sale now only needs the approval of the CRTC. This is necessary as CanWest had partnered with New York-based Goldman Sachs Capital.
CanWest president and CEO Leonard Asper says he's confident that the deal would be approved by the CRTC.
CanWest is interested in the
specialty channels controlled by Alliance Atlantis which include BBC Canada, HGTV Canada and National Geographic Canada. Asper has come to the conclusion that in order to compete with CTVglobemedia, its major compeditor, it needs to get into specialty channels as CTV has prospered with TSN and the Discovery Channel.
Goldman Sachs Capital is interested in the
'CSI' franchise, which is jointly owned by Alliance Atlantis and CBS.
The deal, which must meet CRTC approval, is expected to be completed through a new subsidiary company owned by CanWest by the summer.
The total purchase price, about $53 per share, was slightly above previous industry estimates.
The two Canadian companies have interesting stories of how they got started. What eventually turned out to be
Alliance Atlantis Communictions started out in a rented house in downtown Toronto that served both as an office and sleeping quarters. CanWest Global was the brainchild of
Izzy Asper who began building his empire by buying a dying American radio station and moving it north to Winnipeg, Manitoba.
My late mother came from the Winnipeg area and I have a cousin who worked with Izzy Asper both in the political and entertainment arena. "Peter, all your hard work and aspirations have accomplished what is now happening with regard CanWest." Peter, by the way, made out very well for himself having worked so long with Mr. Asper - he went on to become
Manitoba's Lieutenant Governor.
