Quebecor has made an offer to buy Corus Entertainment, but Corus appears unwilling to engage, according to a source familiar with the matter, reports the Globe and Mail.
Representatives of Quebecor met with Corus executive chair Heather Shaw roughly six months ago, followed by a purchase offer several weeks ago. However, Corus has not responded, and the terms of the offer remain unspecified. The Shaw family holds significant control over Corus with roughly 86% voting control.
Acquiring Corus could allow Quebecor to reduce costs and increase purchasing power, according to the source. Corus owns Global News and numerous other TV channels in Canada, including the Stack TV streaming service.
Both Corus and Quebecor declined to comment on potential acquisitions.
Corus, which is bleeding money, received a debt extension from its lenders until October 15. Prior to this, Corus was expected to default on its loans based on its existing lending agreements. Ratings agency Morningstar DBRS downgraded Corus due to liquidity concerns and its $1 billion debt load, which has led to significant cost-cutting, including over 800 job cuts.
The company’s debt issues were made worse by losing Canadian rights to key Warner Bros. Discovery channels, which will move to Rogers in 2025.
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