Canwest Media and Goldman Sachs

The failure and resurrection of Canwest provides a microcosm of the 2008-2009 recession. Bloated with debt from acquisitions in broadcast and publishing, starved for advertising revenues by retrenching customers, and plagued by uneconomical newspapers and local television stations, Canwest fell into default of its financial obligations in early 2009. By then, the vultures were circling and the Asper family was facing the demise of its media empire.

As it turned out, the salvation of Canwest's media business depended on the assimilation and growth of its most recent acquisition, a specialty television business purchased from Alliance Atlantis in 2007 that included History Television, Showcase and HGTV. During the recession, traditional, "free to air" broadcasting over Canwest's Global Television Network had suffered serious declines of revenue and profit, but the specialty television business was barely touched. While advertising revenues declined, subscription