Two Taiwan cable-television operators are combining to build the island's largest cable and multimedia operator.
Eastern Multi Group and Pacific Electric Wire & Cable, the controlling shareholder of cable television operator Pacific Digital Media - plan to integrate their resources and cable infrastructures to speed up expansion into the global market for Chinese-language pay television.
Under a memorandum of understanding signed yesterday, Eastern Multi and Pacific Digital would have equal stakes in a venture with a registered capital of at least US$200 million, a Pacific Digital official said.
They will develop pay-television services, television-commerce, interactive services, enhanced television and direct-to-home television services in Taiwan, Hong Kong and Southeast Asian countries.
They will share cable-television infrastructure and multimedia resources to roll out both companies' services in the region.
By joining forces, they will become Taiwan's largest cable television and multimedia services operator, with two million subscribers, leaving GigaMedia, the Koos Group's cable-television operator in second place on the island.
'The new company would position itself as a digital interactive-TV platform operator,' said Tom Tung, the chairman of Pacific group.