CANWEST BROADCASTS NEW MEDIA DIVISION
By Adnews Staff
CanWest Global Communications Corporation of Winnipeg is entering a new playing field and going online. The broadcast company has made two strategic investments into American Internet companies as well as announced the launch of its new media division.
The acquisitions and the launch of the new division is just a natural progression for CanWest to stretch its platform into other mediums, Bruce Leslie, director of communications, CanWest Global Communications, told Adnews. CanWest acquired a 20 per cent interest in Internet Broadcasting Systems of Minneapolis and a 20 per cent interest in LifeServ Corporation of Chicago. Under two separate transactions, CanWest paid CAN $22 million for both acquisitions. "In terms of dollars these are not large acquisitions, in terms of strategic development, they are key to launching our new media division," executive vice president, corporate development, Harry Ethans said.
Internet Broadcasting Systems develops specialized Web sites for television stations. LifeServ Corporation is a Web site developer that focuses on imporant live events, such as weddings and births. "Both these companies offer enormous potential to leverage our strength as an international broadcaster into success on-line," said CanWest's COO and incoming CEO Leonard Asper. "Both IBS and LifeServ are complementary to our existing businesses, offering CanWest a platform in which to cross promote and create a television presence for the type of services and advertisers that they appeal to."
The new division is being headed up by Gary Maavara, former director of special projects. Maavara joined CanWest last year after holding prior positions as group vice president, programming and chief legal counsel with the CTV Television Network.
CanWest is an international media company operating the Global Television Network, Global Prime Cable Network and CanWest Entertainment, its production and distribution division in Canada. Internationally, CanWest operates New Zealand's TV3 and TV4 Television Networks, the More FM Radio Network and London-based CanWest Entertainment International.
CanWest announced its New Media Division, which was approved earlier this year, will continue to look for additional acquisitions in the growing new media area. The division will focus on looking for content providers as opposed to service providers, Leslie added.