Hubei Radio & Television, 7/19/17
Beijing-based cable TV network operator Gehua Cable TV Network (600037.SH) and Hubei Radio and Television Information Network (000665.SZ) recently announced plans to establish a cable broadband joint venture, which is temporarily called the "China Broadcasting Broadband Operating Company."
The announcement said that the new joint venture company will focus on national, comprehensive cable broadband business operations within the broadcasting industry, including three main business areas:
1) National broadcasting network and Internet operations;
2) Aggregation of broadcasting network and online content resources, and Internet data center (IDC) and content delivery network (CDN) operations for broadband broadcasting;
3) Technology support for broadband broadcasting network optimization.
The JV will be funded with RMB 200 mln in registered capital provided in cash by six broadcasting firms. Beijing-based cable TV operator China Cable Network will contribute RMB 70 mln for a 35% stake in the venture, and Chongqing Cable TV Network will invest RMB 40 mln for a 20% stake. Gehua Cable TV, Oriental Cable Network, Hubei Radio and Television subsidiary Yunguang Hulian, and Shandong Broadcasting Network will each invest RMB 22.5 mln for 11.25% stakes. The joint venture's official name will be established when business registration formalities are completed.
JV's Shareholder and Stakes
|Shareholder||Investment Amount (Mln)||Stake|
|China Cable Network||70||35.00%|
|Chongqing Cable TV Network||40||20.00%|
|Gehua CATV Network||22.5||11.25%|
|Oriental Cable Network||22.5||11.25%|
|Yunguang (Hubei Radio and TV)||22.5||11.25%|
|Shandong Broadcasting Network||22.5||11.25%|
Keywords: Yunguang Internet data center telecom China Cable Gehua Oriental Cable Network cable broadband Chongqing Cable TV JV 600037.SH Shandong Broadcasting Network 000665.SZ Hubei Radio & Television television