Want Want faces regulatory check on media assets

Want Want China Holdings' acquisition of top-shelf media assets in Taiwan has yet to receive regulatory approval amid concerns the deal could concentrate too much cross-media ownership into the hand of the snack food maker.

Taiwan's National Communications Commission has told Want Want's newly acquired television broadcasters, China Television and CTI Television, it required more information before it could give the green light to the deal.

Want Want bought both stations from China Times Group together with two newspapers in November last year for more than NT$2 billion (HK$460 million). It has applied to replace the chairmen and the boards of directors of the stations.

The commission is scheduled to hold public hearings into the impact of the deal on the media industry.

It said the transaction had raised several key issues including cross-media ownership, foreign ownership and the joint operation of media firms under the same shareholder. It is also concerned about the business direction of the two broadcasters.

As Want Want holds the controlling stake in China Times and Commercial Times as well as the two broadcasters, the commission believes there could be too much concentration of cross-media holdings under one company.

'The commission's move hints that the government is tightening controls on cross-media ownership,' an industry executive told Media Eye.