What's down the track for Next?

After the ill-fated attempt to sell its profitable print business in Taiwan, a big question mark hangs over how Next Media, the media empire controlled by Hong Kong mogul Jimmy Lai Chee-ying, will sustain itself.

Some analysts are concerned about the group's financial health, with Next TV, Next Media's electronic business on the island, and Sharp Daily, its free daily newspaper in Hong Kong, losing money and eating into the group's cash flow.

When the group said the proposed sale of its Taiwanese print and television assets fell through on the deal's March 28 deadline, the group's share price plunged to the level seen half a year ago.

Lai said the group was in talks to divest Next TV while keeping the print business in Taiwan.

Investors have been expecting the media firm, 73.5 per cent-controlled by Lai, to shake off the loss-making Taiwanese operations, especially its television business, and focus on its hometown, Hong Kong.

Lutz Kihm, an adviser at DJE Kapital, which holds 4.07 per cent of Next Media and is the second-largest shareholder after Lai, said he thought the best plan now was to sell the Taiwanese television assets and focus on its core business - print in Hong Kong and Taiwan - as well as the internet business. "Here Next has an edge over its competitors," Kihm said.