Can Corus be saved?

Falling revenues, an ill-fated deal and a crushing debt load: inside the decline of a Canadian media powerhouse

- ANA PEREIRA

At its height, Global Television was a Canadian powerhouse, watched by more than 17 million people weekly, but today experts say it needs to take drastic action if the show is to go on. After a series of financial blows, high-profile layoffs, lost licensing rights and executive departures, analysts interviewed by the Star say the network's owner will need to dramatically overhaul the company-or be allowed to refinance its debt - to stave off bankruptcy.

Toronto-based Corus Entertainment is Canada's largest independent media company, owner of Global Television Network, more than 30 local radio stations and the Canadian distributor of channels such as Food Network, Disney Channel and National Geographic. It has amassed a staggering debt of more than $1 billion, with about $300 million due for repayment within three years and no obvious way to raise the money while keeping the company intact.

Signs of trouble have been emerging for a while.

Last September, the broadcaster shut down "Entertainment Tonight Canada," and in June, long-time CEO Doug Murphy abruptly left the company, replaced by co-CEOs Troy Reeb and John Gossling. Around the time of Murphy's departure, Global News announced a wave of high-profile layoffs, and anchors Alan Carter of "Global News at 5:30 & 6" and Farah Nasser of "Global National" left shortly after.

Since 2021, Corus has seen its stock tumble from a high of about $6.30 to 20 cents as of early July. Half the equity analysts covering Corus surveyed by Bloomberg think the stock could go even lower: they recommend selling, indicating it could become worthless.

"Anything is possible," said one analyst. (The Star granted the analyst anonymity as they were not authorized to speak to the media.) "But you would need the advertising market to really pick up on the traditional media side of the business, which at this point doesn't appear to be happening.

"Barring a miracle, I don't see it getting better."