Rogers Communications has announced that it will be buying both wireless spectrum licenses and Mountain Cable from Shaw Communications. The deal allows the company to acquire the spectrum holdings next year. Likewise, Shaw has purchased the last 1/3 stake in TVtropolis - which is owned by both companies - from Rogers. The deal closed for $700 million CAD.
Rogers now has the option to buy spectrum holdings in Alberta, Manitoba, Northern Ontario, British Columbia, and Saskatchewan. This includes both 10MHz and 20MHz AWS spectrum holdings. If such buys do take place, they will be subject to review and approval by the Industry Canada and Competition Bureau.
TVtropolis is a Canadian TV network that offers high-demand shows. While Rogers will still have access to the network, per the deal, Shaw Communications now entirely owns it. Both the TVtropolis and Mountain Cableview deals are expected to close by this summer. Rogers was paid $59 million for TVtropolis as a deposit when the deal was signed.
Rogers' President and CEO Nadir Mohamed offered this statement. "The agreements will benefit businesses and consumers across the country and fit squarely within our focused, strategic game plan. We're investing in spectrum to ensure our customers continue to enjoy the incredibly fast speeds and throughput they crave, while ensuring our continued network leadership. We're also strengthening our Cable portfolio by acquiring a valuable cable business which complements our existing Ontario cable system allowing us to deliver even more value for our customers and shareholders."