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CCTV may buy stake in TVB

By Zhang Jin and Hui Ching-hoo (China Daily)
Updated: 2006-08-02 08:36

HONG KONG: National flagship broadcaster China Central Television (CCTV) has reportedly approached Hong Kong's dominant Chinese-language broadcaster Television Broadcasts (TVB) for a stake.

The potential deal, revealed by local media but not confirmed by either broadcaster, would create the first tie-up between mainland and Hong Kong television broadcasters, ushering in more such deals, analysts predict.

Shaw Brothers, TVB's controlling shareholder, "has at various times been approached by and has had discussions with potential interested parties regarding a possible purchase of shares," the company said in a statement.

However, it declined to reveal if CCTV was one of the parties when asked by China Daily yesterday. CCTV was not available for comment.

English-language Hong Kong newspaper The Standard said on Monday CCTV was eyeing TVB's assets, citing an unidentified mainland source.

It is the second time mainland giants have looked at Hong Kong's TV companies in two months.

In June, China Mobile Ltd, the world's largest mobile operator, acquired almost 20 per cent of Hong Kong's Phoenix Satellite TV Holdings Ltd for a reported HK$1 billion (US$128 million).

Local media analysts said a TVB stake sale is on the cards, as 99-year-old tycoon Run Run Shaw, TVB's founder, has failed to find a suitable successor over the past years.