Shaw sold to Rogers in 2023 for 26 billion dollars including debt, primarily due to need for scale to compete in 5G and fiber, family succession, and competitive pressure in Canadian telecommunications market requiring massive investment. Shaw Communications, founded by JR Shaw family in 1966 in Edmonton, Alberta, was family-controlled telecommunications company providing cable, internet, and wireless via Freedom Mobile. Shaw family decided to sell to Rogers Communications for several reasons, including need for huge capital to invest in 5G wireless and fiber optic networks to compete with Bell and Telus, as standalone Shaw lacked scale to invest billions needed for next-generation networks. Family succession, with JR Shaw passing in 2020 and sons Jim and Brad Shaw nearing retirement, wanting to monetize family business and ensure future. Regulatory approval required Shaw to sell Freedom Mobile wireless division to Videotron to address competition concerns, which was done. Rogers acquisition allowed Shaw to benefit from Rogers scale and 5G investment, while Rogers gained Western Canada cable footprint and customers. So why did Shaw sell to Rogers? For scale to compete in 5G, family succession and monetization, and competitive pressure, with deal valued 26 billion dollars including debt, closing in 2023 after regulatory approval, making Rogers largest cable company in Canada.
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