Shaw Communications shareholders have overwhelmingly approved the spin-off of Corus Entertainment as a separately traded and independently operated company, effective Sept. 1.

Under the new agreement, Shaw Communications will continue to carry Shaw’s cable tv, Internet access, telecommunications and satellite business, while Corus will umbrella its specialty tv assets (which include ytv, Treehouse tv, Country Music tv, 15% of The Comedy Network, and 20% of Telelatino and Teletoon) and its radio broadcasting, digital music and advertising services.

‘We believe we can increase shareholder value as a result of the split because investors will be able to participate in two pure plays, which are generally valued higher than corporations with diverse interests,’ says Corus president and ceo John Cassaday (former president and ceo of Shaw Media).

Separating the two companies also addresses the crtc’s concerns about undue preference being shown to programmers owned by cable companies.

And, as Cassaday points out, the split gives each company its own cash reserves (so they can’t be constrained by each other) and allows Corus management to focus on building content.

‘At Shaw Communications, the media assets were a somewhat smaller part of a larger company,’ he says.

While the company’s first priority is building its radio assets, Corus is actively looking for acquisition opportunities in specialty tv.

Applications have already been filed to the crtc for three new digital channels, including the Food Channel, of which Corus holds 20% and is in partnership with Alliance Atlantis Communications; Chaos, a teen-oriented service in partnership with aac and Salter Street Films; and The Edge, an alternative, 24-hour music channel which Corus holds 100%.

Meantime, Shaw and CanWest Global are in the final stages of negotiating their split of WIC Western International Communications.

‘Corus would be the beneficiary of the bulk of the assets that accrue to Shaw when the deal’s complete; so, Cancom would go to Shaw and the radio and specialty television assets would go to Corus. CanWest would pick up the conventional tv assets of wic,’ says Cassaday.

As of Sept. 3, Corus will be traded on the Toronto and Alberta stock exchanges, and later this fall, it is expected to be up on the New York Stock Exchange.