New Chinese digital broadcaster

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Xinhua Finance Media has bought 100% of China Media Network, itself owners of a 49% stake in Tianjin Shidai Tianchuang which transmits four pay-TV channels throughout China. The deal was announced Oct 9.

XFMedia, as part of the agreement, acquires a majority interest in the companies operating the four channels giving it rights to the majority of the profits from the whole venture. XFMedia will make an initial cash payment of US$5 million upon signing the agreement, followed by a further cash payment of US$10 million.

The company will also issue two million Class A common shares (one million ADS) of XFMedia if certain conditions are met, including the successful repositioning of the channels, the transfer of the equity interest in Shidai Tianchuang, and the establishment of the JV Companies.

Recent data shows that the number of Chinese homes with digital pay-TV access grew to 27.3m at the end of last year from 12.9m in 2006. Informa Media predicts this number will rise to 123m by 2013.

Morgan Stanley, in a report published in June 2008, said China's digital TV industry has entered a "hyper growth phase". The Morgan Stanley report said: "As most Chinese people have gradually satisfied their needs for food and shelter, they hunger for high-quality media content. Going forward, the media industry will likely see the fastest growth in consumer demand and wealth creation in China."



Source:RapidTVNews