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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

Shaw, now TVB chairman, has a 32.5 per cent stake in the company through Shaw Brothers and Shaw Foundation.

Hong Kong tycoons such as Li Ka-shing, Richard Li and Chow Yei-ching are also interested in the deal and CCTV might join a consortium to strengthen its bargaining power, local reports said.

Among potential bidders, CCTV would have the best synergy with TVB, as they play in the same field, said Casor Pang, strategist for Sun Hung Kai Financial.

Hong Kong-based analysts also said the deal would be good for both parties.

"It's a typical mix-and-match TVB wants to go to the mainland, and CCTV wants to go overseas," said Patrick Yiu, associated director of CASH Asset Management.

TVB and CCTV set up a joint venture in 2001 to distribute content in markets outside the mainland.

For CCTV, a further stake purchase would consolidate its leadership in China and fuel its campaign to enhance its influence in Asia and the world.

"TVB's top position in Hong Kong is really attractive to ambitious players like CCTV," Pang said.

TVB reaches more than 2 million families in Hong Kong and lands on more than 30 countries and regions, with its programmes covering nearly 30 million viewers globally.