MBK Partners Ltd, a private equity fund formed by former Carlyle Group executives, will buy 60 percent of China Network Systems Co (
"The deal was signed yesterday," Gary Tsai (
He declined to give further details.
China Network is owned by News Corp's Star Group, which holds a 20 percent stake, and Taiwan's Koo family, which holds 80 percent.
MBK's purchase comes amid speculation the government will allow the nation's four major cable TV networks to boost revenue by delivering extra services such as digital television and high-speed Internet. Currently, 6.5 percent of cable subscribers have digital television, compared with more than 90 percent in Hong Kong.
"It may work for MBK if CNS, under its control, can deliver a well-executed broadband strategy and it can capitalize on the `promise' of new regulatory environment to deliver digital pay-TV growth," said Vivek Couto, executive director of Media Partners Asia Ltd in Hong Kong.
Nelson Chang (
The deal and purchase price were reported by the Chinese-language Economic Daily News earlier yesterday.
Taiwan had the second-highest cable and satellite television penetration rate in Asia with 88 percent at the end of last year, behind South Korea with 92 percent, yet average revenue per user was the ninth highest, at US$17.07, according to figures compiled by Media Partners.
Relaxation of rules by the National Communications Commission will allow cable television providers to set their own prices and roll out cable Internet services which could boost profitability.
Taiwanese operators could achieve operating margins as high as 60 percent for their cable Internet businesses, based on similar margins elsewhere in the region, according to Couto.
China Network's average revenue per user was NT$578 last year, less than that of Taiwan Broadband Communications (
Meanwhile, Macquarie Bank Ltd, Australia's largest securities firm, said yesterday it sold 20 percent of Taiwan Broadband.
The Sydney-based bank declined to name the buyer of half its 40 percent stake or give the price paid.
The Macquarie Media Group, managed by Macquarie Bank, agreed to buy Taiwan Broadband from US buyout firm Carlyle Group in December for A$1.19 billion (US$898 million), in a deal that gave it 12 percent of Asia's third-largest cable TV market. Macquarie Media bought 60 percent and Macquarie Bank 40 percent.
Stephen Garrett, a 27-year-old graduate student, always thought he would study in China, but first the country’s restrictive COVID-19 policies made it nearly impossible and now he has other concerns. The cost is one deterrent, but Garrett is more worried about restrictions on academic freedom and the personal risk of being stranded in China. He is not alone. Only about 700 American students are studying at Chinese universities, down from a peak of nearly 25,000 a decade ago, while there are nearly 300,000 Chinese students at US schools. Some young Americans are discouraged from investing their time in China by what they see
MAJOR DROP: CEO Tim Cook, who is visiting Hanoi, pledged the firm was committed to Vietnam after its smartphone shipments declined 9.6% annually in the first quarter Apple Inc yesterday said it would increase spending on suppliers in Vietnam, a key production hub, as CEO Tim Cook arrived in the country for a two-day visit. The iPhone maker announced the news in a statement on its Web site, but gave no details of how much it would spend or where the money would go. Cook is expected to meet programmers, content creators and students during his visit, online newspaper VnExpress reported. The visit comes as US President Joe Biden’s administration seeks to ramp up Vietnam’s role in the global tech supply chain to reduce the US’ dependence on China. Images on
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last
US CONSCULTANT: The US Department of Commerce’s Ursula Burns is a rarely seen US government consultant to be put forward to sit on the board, nominated as an independent director Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday nominated 10 candidates for its new board of directors, including Ursula Burns from the US Department of Commerce. It is rare that TSMC has nominated a US government consultant to sit on its board. Burns was nominated as one of seven independent directors. She is vice chair of the department’s Advisory Council on Supply Chain Competitiveness. Burns is to stand for election at TSMC’s annual shareholders’ meeting on June 4 along with the rest of the candidates. TSMC chairman Mark Liu (劉德音) was not on the list after in December last