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SOURCE Corus Entertainment Inc.
TORONTO, Dec. 20, 2013 /PRNewswire/ - 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 year-end.
"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 everywhere."
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 television stations.
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.
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