Rogers turned 'predatory' after Shaw acquisition, Corus says

financialpost.com:

Telecommunications firm Rogers Communications Inc. is abusing its market power following its blockbuster acquisition of Shaw Communications Inc., according to a complaint by a Canadian television company.

The legal filing was made by Corus Entertainment Inc., a financially troubled media company that’s controlled by the Shaw family of Alberta — the same wealthy clan that sold its most valuable assets to Rogers last year. It’s a twist that demonstrates the concentration of media ownership in Canada.

For decades, the Shaws controlled two separate public companies. Shaw Communications focused on selling internet, cable and wireless services to consumers in Western Canada, and was acquired by Rogers in April 2023 for about $20 billion. Corus, which is listed in Toronto, owns a clutch of cable television channels and a network of local TV and radio stations across Canada.

Corus, however, is now in distress, with its stock market value down to $31 million and analysts warning it must recapitalize to reduce debt. And as the company bleeds, Rogers has stuck the knife in, according to its complaint to the country’s broadcast regulator.

Corus’s complaint centres on how Rogers is luring customers to Walt Disney Co.’s Disney+ streaming app, after signing a deal with the Hollywood giant in which Rogers handles Canadian advertising sales for the ad-supported tier. Corus says this undercuts its own “Disney-themed channels” and it concludes by alleging a wider effort by Rogers to “eliminate Canadian competition.”

In June, Corus also lost important programming and trademark deals with Warner Bros Discovery Inc. and NBC Universal to Rogers — accelerating its spiral.

“Rogers is attempting to imperil Corus in every market: content