Shaw buys CanWestSee article in Globe and Mail
Why Shaw Wants CanWest.
I paste:
“This transaction makes Shaw arguably the top player in TVentertainment in Canada, provides access beyond its western footprint,and strengthens its position in major markets in the West,” Mr. Yigitsaid.
Analysts were craving financial details of the deal early on Friday,but they were hesitant about being too optimistic, given that the moveextends Shaw well beyond its core competencies. There was also someconcern that the deal may distract the company from focusing on itswireless efforts, on which the company said it would take “initialsteps” in 2010, but would not launch until a later date.
Own a few SJR.B.to shares. This presents a "buy more, hold, sell?" moment of reflection.
I have questions:
1) Will convergence translate into solid profit streams? Provision and content are so different, so highly specialized. Content creation plays in a market with low barriers to entry.
2) Will Shaw have the courage to either gut the National Post or completely rebuild it? Will Shaw get serious with other people's money or continue to manage it as a vanity investment?
3) Will the editorial policy of CanWest media with respect to Mid-East politics be changed 180 degrees? (Seems that a wide variety of news and views could only help market the newspapers and television channels and sell advertising, dontcha think?)
4) Other considerations? Shaw's chief exec. looks like a relaxed boheme. Should I worry? ;) He also looks smart which might be a more important factor.