 | This article has multiple issues. Please helpimprove it or discuss these issues on thetalk page.(Learn how and when to remove these messages) (Learn how and when to remove this message)
|
 Final logo used from 2004 to 2010 | |
 Canwest's headquarters at201 Portage Avenue | |
| Formerly | Canwest Global Communications Corporation |
|---|---|
| Company type | Public |
| TSX: CGS TSX: CGS.A NYSE: CWG | |
| Industry | Mass media |
| Founded | 1974; 51 years ago (1974) |
| Founder | Izzy Asper |
| Defunct | October 27, 2010; 15 years ago (2010-10-27) (operations) May 27, 2013; 12 years ago (2013-05-27) (dissolution) |
| Fate | Bankruptcy andliquidation
|
| Successor | Shaw Media (broadcasting) andPostmedia Network (publishing spin-off) |
| Headquarters | 201 Portage Avenue,, Canada |
Area served | Canada, Australia, New Zealand, Ireland, United Kingdom, Turkey |
Key people | Derek H. Burney (chairman of theboard) |
| Revenue | CA$2.867 billion (2009) |
| C$ 197 million (2009) | |
| C$ −1.689 billion (2009) | |
| Total assets | C$ 3.876 billion (1Q 2010) |
| Total equity | C$ −449 million (1Q 2010) |
Number of employees | 12,072 (May 2009) |
| Footnotes / references [1] | |
Canwest Global Communications Corporation, which operated under the corporate nameCanwest, was a majorCanadianmedia conglomerate based inWinnipeg,Manitoba, with its head offices atCanwest Place (now called 201 Portage). It heldradio,television broadcasting, andpublishing assets in several countries, primarily in Canada.
Canwest was founded in 1974 byIzzy Asper through the formation ofCIII-TV inToronto under theGlobal Television Network. The company expanded through the 1980s and 1990s, with theinitial public offering in 1991 as a publicly traded corporation and the international expansion of its operations in Ireland, Australia, New Zealand, United Kingdom and Turkey. Throughout the years, underLeonard Asper, who became its president and CEO in 1999, Canwest grew into a major media powerhouse by acquiring media properties such asWestern International Communications and theSoutham newspaper publishing. In 2007, withGoldman Sachs, Canwest acquired the broadcasting arm ofAlliance Atlantis.[2]
After years of debt, Canwest began to slowly collapse in 2008, amid theGreat Recession and later enteredbankruptcy protection in late 2009, which led to the sale of its publishing and broadcasting arms the following year toPostmedia Network, founded byNational Post CEOPaul Godfrey andShaw Communications, which later reorganized its media division asShaw Media.[3][4] On April 1, 2016, the broadcasting assets were subsumed intoCorus Entertainment, an existing broadcasting firm also owned by the Shaw family.[5][6]
Following the sale of assets, the company was renamed2737469 Canada Inc., ceased to carry on business, and commencedbankruptcy proceedings under theBankruptcy and Insolvency Act before finally being dissolved on May 27, 2013.[7][8]
As of April 2009[update] (prior to seeking creditor protection), Canwest owned, in whole or part, a variety of Canadian media assets, including:
The company had previously sold off some of the smaller newspapers it had acquired in the Southam purchase. Canwest also previously owned broadcasting operations inAustralia (as majority shareholder ofNetwork Ten),New Zealand (throughCanWest MediaWorks New Zealand), theRepublic of Ireland (as a minority shareholder ofTV3) andTurkey (as the owners of four radio stations (Metro FM (Turkey), Süper FM, Joy FM, Joy Türk)).
In 1974, a group led byIsrael Asper bought the assets ofPembina, North Dakota television stationKCND-TV from broadcasterGordon McLendon, moving the station to Winnipeg as an independent stationCKND-TV. Asper, through his company, Canwest, eventually bought out his partners in the Winnipeg station. A few months later, the Asper group joined a consortium that bought CKGN-TV, a network of six simulcasting transmitters acrossOntario that carried many of CKND's programs and was known on-air as theGlobal Television Network. Canwest bought controlling interest in Global, now using the callsignCIII-TV, in 1985, thus becoming the first western-based owner of a major Canadian broadcaster. He acquired the remaining stock in 1989.[9]
Canwest subsequently invested in or acquired other independent TV stations across Canada. Eventually, his station group became known as the "Canwest Global System." In 1997, Canwest bought a controlling interest inCKMI-TV, the privately owned CBC affiliate inQuebec City. Canwest then set up CKMI rebroadcasters inMontreal andSherbrooke. With this move, Canwest's stations now had enough coverage of Canada that on August 18—the day CKMI officially disaffiliated from CBC—Canwest scrubbed all local brands from its stations, rebranding them as "The Global Television Network," Canada's third television network. Throughout the 1990s, Global (and its antecedents) held Canadian rights to hit U.S. series such asCheers,Friends, andFrasier.
Canwest also bought broadcasting assets internationally, including outlets inNew Zealand, theRepublic of Ireland, andAustralia, although all were eventually sold off. In 1991, Canwest issued a successful initial public offering on the Toronto Stock Exchange. In June 1996, Canwest was listed on the New York Stock Exchange.[10]
Lacking a presence inAlberta, the company set its sights onWestern International Communications, which owned three independent stations in that province that carried Global programming. It eventually bought that company's broadcasting assets in 2000. This not only boosted Global's coverage in western Canada but prompted the establishment of a second over-the-air service, originally known asCH, since in some areas the combined company had duplicate over-the-air coverage through multiple stations. Later that year, Canwest announced its acquisition ofSoutham Inc.'s newspaper chain fromConrad Black, in order to pursue amedia convergence strategy.[11]
Canwest was initially slow to invest inspecialty channels due to the strength of its terrestrial network. In 1999, seeking to change this, the company announced a deal to buy out the Canadian partners ofNetStar Communications, owner ofTSN, but was stymied by U.S. partnerESPN, which had veto power over such a sale. ESPN instead came to terms with Canwest's main rivalCTV, a longtime business partner of ESPN's parent companyDisney, as an acceptable buyer,[12] which the selling partners eventually agreed to.[citation needed]
In an effort to get into the entertainment business, the company had bought out producer/distributorFireworks Entertainment in 1998,[13] and gained interest inSeven Arts Pictures, a film production company.[14] CanWest would sell its entertainment unit in 2005.[15]
In 2005, CanWest launched a new website, Canada.com, which served as a digital media platform for its rebranded brands in the digital space. These brands encompassed various local news outlets, major newspapers, and other media entities. The brands were collectively presented under the "canada.com Network" and included the following (as listed in the website footer): Newspapers: National Post, Calgary Herald, Edmonton Journal, The Montreal Gazette, Ottawa Citizen, Regina Leader Post, The Saskatoon Star Phoenix, The Vancouver Sun, The Vancouver Province, Victoria Times Colonist, The Windsor Star, Dose, Vancouver Island Newspaper, VANNEET Newspaper; Television: Global, CH, Prime TV, Fox Sports World Canada, Lonestar, Mystery, Xtreme Sports, Deje View, mentv, Cool TV; Radio: CoolFM 99.1, 91.5 The Beat; Marketplace: working.com, driving.ca, connecting, celebrating, remembering, homes. The website experience revolved around news, city guides, activities, and events to enhance advertising revenue. The site was developed by Cossette/Fjord based in Toronto, Canada, in 2005.
In October 2005, CanWest's Canadian newspapers were sold into an IPO trust. Sold 25.8% of Canada's newspapers for C$550 million. Attached to the Canadian newspaper IPO was $850 million in long-term debt. CanWest bought back the 25.8% Newspaper Trust IPO (and debt) in November 2008, for cash considerations of $495 million.[citation needed] In April 2006, Canwest acquired four radio stations inTurkey: Super FM, Metro FM, Joy FM and Joy Turk FM from The Turkish Savings and Deposit Insurance Fund for aggregate cash consideration of US$61 million.[16]
The company was already one of the largest owners of Canadian local TV stations when Canwest andGoldman Sachs, in 2007, announced they would jointly acquire Canadian producer and competing broadcasterAlliance Atlantis and its massive stable of wide-distribution specialty channels. Under the deal, Canwest took control of the broadcasting portion of AAC, although Goldman Sachs remained a major investor in those assets. Goldman retained or resold the remaining pieces of AAC, the distribution arm soon re-emerging asAlliance Films.[citation needed]
Canwest executives testified in theCanadian Radio-television and Telecommunications Commission hearings overfee-for-carriage, requesting that the commission force cable and satellite companies to pay for their signals without passing the fees on to their subscribers. In his testimony, Canwest president Leonard Asper blamed the current rules for the poor financial condition of Canada's broadcast television stations, a position which has subsequently been adopted and addressed through rule changes by the CRTC and FCC.[17]
Canwest's various acquisitions took a significant financial toll. As early as 2002, most of Canwest's operating income was going to pay interest on its high-interest-rate debt. By 2007, the company's bonds were downgraded to junk status.[18] By early 2009, it became clear the company's debt was not manageable during theGreat Recession, forcing Canwest into an extended set of negotiations with its lenders and a series of cost-cutting moves. The company's income statements reported net losses in 2008 and 2009, even though its operating activities were profitable (before taxes, interest, and non-operating charges: C$197 million in 2009, vs. C$428 million in 2008).[citation needed]
In May 2009, Canwest sold off four radio stations in Turkey to Spectrum Medya.[19]
On August 31, 2009, Canwest shut down its secondary systemE! (the former CH). Three of the former E!owned-and-operated stations –CHCHHamilton,CHEKVictoria, andCJNTMontreal – were sold to third parties, while a fourth,CHBCKelowna, was converted to a Global station. The remaining station,CHCARed Deer, was closed as of the same date.[20][21]
On September 24, the company announced that it would sell its 50.1% stake inTen Network Holdings forA$680 million,[22] in order to pay down its significant debt. The sale of CanWest's Australian media operations reduced some C$582-million in debt tied to the Australian TV network, raising the total value Canwest can erase from its overall debt to more than C$1.2-billion. Before the Ten deal, Canwest held about C$3.8-billion of debt on its balance sheet. In court documents, Goldman Sachs alleges "fraudulent" and "abusive" changes to the internal operation of Canwest in the days before it filed for creditor protection. As part of the filing, the Wall Street investment bank is seeking to undo these changes, and has also claimed that CanWest's creditors should return the C$426 million they received from Canwest balance sheet in September, after CanWest sold its stake in Ten.[23]
On October 6, the company voluntarily filed for creditor protection under theCompanies' Creditors Arrangement Act (CCAA), due toCA$4 billion mounting debt across radio, television broadcasting and publishing assets in several countries.[24] At the same time it announced it had agreed to a recapitalization transaction with some of its lenders, which will likely require the approval of theCanadian Radio-television and Telecommunications Commission (CRTC). When completed, bondholders – led byhedge funds West Face Capital,GoldenTree Asset Management, andBeach Point Capital Management[25] – will own a majority of shares, leaving existing shareholders, including the Asper family, with a total of 2.3% of the "new" Canwest. However, the Aspers are expected to invest a further C$15 million in the restructured entity.[26]
In January 2010, CanWest's bonds commanded about 70 cents on the dollar. CanWest's bonds at one point traded for as little as 15 cents on the dollar. Several sources say that as CanWest notes increased fivefold in price, distressed-debt funds took profits on part of their position, with Angelo Gordon among the buyers.[27]
On February 3, 2010,[28] it was reported that a group led by Golden Tree Asset Management LP complained that "it was unfairly frozen out of the auction of Canwest Limited Partnership."[citation needed]
As part of the transaction, Canwest and some of its subsidiaries, including Canwest Media Inc.,The National Post Company, and Canwest Television LP (the licensee of Global,MovieTime,DejaView, andFox Sports World Canada) filed for creditor protection under theCompanies' Creditors Arrangement Act (CCAA). Canwest Limited Partnership, a subsidiary that owns the company's other newspaper assets and online properties, is negotiating separately with creditors and is expected to file for creditor protection at a later date. Specialty channels operated in partnership with other companies (such asTVtropolis,Mystery TV,MenTV, and the formerAlliance Atlantis properties) are also not included in the present filing. Canwest shares were also suspended from trading on theTSX.
Canwest said that it was not beingliquidated at this point, and the company insisted that the proceedings would make Canwest "a stronger industry competitor with a renewed financial outlook." Nevertheless, some analysts expected that the conglomerate would sell assets or be broken up entirely as the restructuring process continues, noting that the publishing division has a separate set of lenders.[25] As it turned out, the company would indeed be broken up.
In February 2010, the company announced an agreement withShaw Communications whereby the latter company would buy an 80% voting interest, and 20% equity interest, in the restructured entity, pending approvals from theCanadian Radio-television and Telecommunications Commission (CRTC) and others. The company's newspapers were not part of the Shaw deal and were already sold separately toPostmedia Network.[29] However, the Asper family with Goldman and Catalyst made their own bid to retake Canwest with a $120 million bid in competition with the bid proposed by Shaw Communications.[30] On February 25, 2010, it was announced that Shaw Communications had won a court battle to continue their plans to purchase assets & voting shares from Canwest. After the announcement, Shaw revealed that its investment amounted to a minimum of $95-million in exchange for 20 percent of the equity and an 80 percent voting interest in the restructured company.[31]
Although Goldman, Catalyst, and the Aspers continued to work on their own bid after the Shaw agreement, Shaw announced a revised agreement, following court-ordered mediation, under which it would purchase the entirety of Canwest's broadcasting operations, including the portion owned by Goldman.[32] This deal was later modified following a second court-ordered mediation to include a settlement agreement between Shaw, creditors, and the Official Ad Hoc Committee of Shareholders, led by the Aspers, Blott Asset Management, L.L.C. and two other hedge funds.[33] This marked the first successful equity committee campaign in Canada under CCAA. A modified deal, including the Settlement Agreement, received the approval of the Ontario Superior Court on June 23, 2010,[34] theCompetition Bureau as of August 13, 2010,[35] and was given final approval from theCRTC on October 22, 2010, with Canwest delisting itself from the TSX and officially ceasing operations that same month.[36][37] Final closing would officially occur in October 2011 following the official CMI Transition Order. Meanwhile, Shaw Communications reorganized Canwest intoShaw Media.
After bankruptcy proceedings concluded under theBankruptcy and Insolvency Act, Canwest, by this point known as2737469 Canada, Inc., finally dissolved on May 27, 2013, after 39 continuous years of operation. Asper, through his Syngus Corp. holding company, went on to establishAnthem Media Group in 2010 and has since grown into the portfolio through the ownership ofImpact Wrestling,AXS TV,Fight Network andGameTV.
In April 2016, the Shaw Media assets were subsumed by Shaw's sister companyCorus Entertainment.[38][6]
The last members of theboard of directors of the company wereDerek Burney, David Drybrough, David Kerr,Leonard Asper,Izzy Asper, Lisa Pankratz,Frank McKenna,David Asper, andGail Asper.[39] Gail Asper, David Asper, and Lisa Pankratz resigned from the board, and from all other director and officer positions within Canwest and its subsidiaries, on February 10, 2010.[40]
Since the 2000 acquisition of the major former Canadian newspaper holdings ofConrad Black'sHollinger International (nowSun-Times Media Group), includingCanwest News Service, opposition has been expressed by some journalists, union spokespersons, politicians, and pundits about Canwest's enforcement of its corporate editorial positions. A 2001 decision to run regular uniform nationaleditorials in all metropolitan dailies (exceptNational Post), whereby localeditorial boards could not take local positions on subjects of national editorials, ignited major national controversy and was subsequently withdrawn.
Conflict over Canwest editorial control and policy has focused in particular on three issues:
