Gehua, Fubon to Open TV Shopping JV
Netease Tech, 5/04/10
Beijing-based cable TV network operator Gehua (600037.SH) announced on Monday that the company plans to establish a TV shopping joint venture with Fubon Multimedia Technology's Hong Kong subsidiary. Gehua will invest RMB 20 mln, representing 20% of the new JV's RMB 100 mln in registered capital. The company, which is tentatively to be named Fubon Gehua (Beijing) Shopping Service, will be primarily engaged in program production and product sales for a TV shopping channel. Gehua will be responsible for broadcast of the channel in Beijing, while Fubon will be responsible for management and technology of the shopping operations, as well as providing overall operational support for the channel.
Gehua said that it will benefit from the JV in three areas: levying transmission fees from the JV for broadcasting the service to its Beijing DTV subscribers, earning commissions from the JV at a rate to be determined by the company's annual operating performance, and sharing profit according to its equity ownership in the JV.
Keywords: Fubon Multimedia TV shopping channel television Gehua JV 600037.SH
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