Next Media will sell its loss-making Taiwan television business after failing to obtain a cable television licence from the island's increasingly Beijing-friendly government.
Next, whose chairman Jimmy Lai Chee-ying is known for his anti-Beijing stance, yesterday signed an agreement with Lien Tai-sheng, chairman of Taiwan's Era Television, for the Hong Kong-listed firm to sell its Taiwan television unit to Era, according to Lai's assistant, Mark Simon.
According to one source, Next ploughed roughly US$250 million into its Taiwan television business, and some analysts said the sale, at an undisclosed price, could ease finances for Lai's media empire.
Depending on the buyer, there could be 200 to 300 lay-offs in the business's set-top box division, but there would be no lay-offs in Next's other businesses, Simon said, adding that Taiwan media reports of 500-odd lay-offs were too high.
He said the main reason for the sale was Next's failure to obtain approval for a cable television business from the Taiwan government.
"The Taiwan government won't let Jimmy Lai into cable," he said.
"Jimmy crossed every stream and climbed every mountain to get a licence. It's pretty obvious the answer is no. The sale will turn the business over to someone who can do more with it."