CanWest Global Communications Corp. has "offered to
buy" NetStar Communications, owner of The Sports Network
(TSN) in Canada, for C$700M, according to Brenda Dalglish of
the Toronto GLOBE & MAIL. However, ESPN, a 32% owner of
NetStar, "has not yet accepted CanWest's offer" and has 15
days to decide whether to accept it. If ESPN decides to
pass, it has 90 days to find an alternate Canadian buyer.
CanWest is paying C$370M to shareholders while assuming
NetStar's C$330M debt (GLOBE & MAIL, 1/21). If ESPN opts to
sell its stake to CanWest, the deal's price would be raised
to C$875M (FINANCIAL POST, 1/21). ESPN said in a statement
that it will "be taking" its time before making a final
decision. TSN is Canada's "most-watched specialty channel"
and has Canada's "most-visited Internet site" (Ferguson &
Menon, TORONTO STAR, 1/21). In Toronto, Chris Zelkovich
writes that the deal "could have a big impact on which
channels" sports fans "turn to for sports and which people
deliver the sports." The combination should give CanWest's
Global and TSN "more flexibility and more clout" in securing
rights deals, as the two could "corner the Canadian market"
on NFL games by placing some on Global's broadcast channel
and some on TSN's cable arm (TORONTO STAR, 1/21). Also in
Toronto, Rob Longley reports that Global is "not expected"
to make big changes at TSN, and that the deal gives TSN the
"clout of the mainstream network partner it desired." TSN
is now seen in 7.2 million homes and has estimated revenues
of C$50M in '98 (TORONTO SUN, 1/21).
