Deliberations over Taiwan Optical Platform Co’s proposed acquisition of Eastern TV (ETTV) are to continue amid legal issues that need clarification, the National Communications Commission (NCC) said last week.
Taichung-based Taiwan Optical has been investigated over suspicions executive director Liao Tzu-chen’s (廖紫岑) might have received funding from China to purchase the cable TV network because of his close relationship with some Chinese investors.
The operator in December last year purchased two cable TV services in Chiayi and Tainan for NT$11.8 billion (US$387.42 million at the current exchange rate), raising questions about its ability to make further acquisitions.
The Fair Trade Commission earlier this month approved Taiwan Optical Platform’s acquisition of ETTV, provided the company broadcast its cable TV company through Chunghwa Telecom Co’s multimedia-on-demand system within six months after the acquisition is approved.
Taiwan Optical was asked to report on how it plans to charge other multiple system operators authorization fees for its content and channels for which it serves as an agent. The deal must secure NCC and the Investment Commission’s approval.
The NCC held an administrative and public hearing in January.
NCC spokesperson Wong Po-tsung (翁柏宗) said the commission received a tip-off that the deal might have contravened regulations banning political parties, the government and the military from investing in the media.
The commission is investigating the claim, Wong said.
Taiwan Optical was also asked to report to the NCC how it would manage its network channels if the deal is approved.
Taiwan Optical earlier this week said that Pingtung County Councilor Song Li-hua (宋麗華) purchased 1,000 shares, infringing on regulations.
The company accused Song of malicious intent to sabotage its proposed acquisition, adding that it has asked the district court to annul the purchase.
Song is the wife of former Non-Partisan Solidarity Union legislator Tsai Hao (蔡豪), who is known to have a close relationship with Gary Wang (王令麟), the founder of ETTV.
Eastern Media International, which owns 35 percent of ETTV, has been vehemently opposed to the proposed acquisition.
ETTV is owned by the Carlyle Group.
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