Shaw 2010 Annual Report Download - page 87

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ownership compliance decision from Industry Canada and was granted its AWS licenses.
Accordingly, the deposits on spectrum licenses were reclassified to Intangible assets.
CW Media
On May 3, 2010 the Company announced that it had entered into agreements to acquire 100% of
the broadcasting business of Canwest Global Communications Corp. (“Canwest”) including
CW Investments Co. (“CW Media”), the company that owns the specialty channels acquired from
Alliance Atlantis Communications Inc. in 2007. The total consideration, including assumed debt,
is approximately $2,000,000.
During the current year, the Company completed certain portions of the acquisition including
acquiring a 49.9% equity interest, a 29.9% voting interest, and an option to acquire an additional
14.8% equity interest and 3.4% voting interest in CW Media for total consideration of $750,375,
including acquisition costs.
The Company exercises significant influence over CW Media with its 49.9% ownership and
recorded an equity loss of $11,250 for the period of May 3 to August 31, 2010. The difference
between the cost of the 49.9% equity investment in CW Media and the Company’s share of the
underlying net book value of CW Media’s net assets on May 3, 2010 was $159,000 which was
allocated on a preliminary basis as follows:
$
Indefinite life broadcast rights 181,000
Goodwill, not deductible for tax 47,000
228,000
Long-term debt (23,000)
Future income taxes (46,000)
159,000
83
Shaw Communications Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
August 31, 2010, 2009 and 2008
[all amounts in thousands of Canadian dollars except share and per share amounts]