Beijing-based digital TV conditional access solutions provider China Digital TV Holding (NYSE: STV) has announced that it will participate in a joint investment of up to USD 17 mln in Chinese online video site OpenV, alongside one of OpenV's existing shareholders.
China Digital TV will invest up to USD 14.5 mln, consisting of consideration for an initial equity investment, a convertible loan to OpenV and consideration payable upon the potential exercise of a warrant to purchase additional shares of OpenV. China Digital TV's equity interest in OpenV would be approximately 25% to 31%. China Digital TV has the right to appoint two directors to OpenV's seven-member board of directors.
Founded in 2006, OpenV currently has entered into cooperation agreements with more than 40 of China's TV stations, including six strategic content partners, namely, CCTV, Beijing TV, Shanghai Media Group, Phoenix TV, Hunan TV and China Entertainment TV. OpenV offers 578 online TV channels and owns millions of hours of licensed video content. As of the end of 2009, OpenV's daily average traffic reached more than 55 mln page views, 40 mln video views and 8 mln unique visitors.