CCTV looks for stake in TVB

China's Xinhua News Agency has reported that national broadcaster China Central Television (CCTV) has approached Hong Kong's Television Broadcasts (TVB) looking to buy a stake in the popular broadcaster. TVB is the territory's leading Chinese-language broadcaster. The controlling stake in the station is currently owned by Shaw Brothers, the cinema, TV and media group set up by veteran Hong Kong entertainment tycoon Sir Run Run Shaw who still owns a 32.5 percent share of the company. However, Shaw has no obvious successor and at 99, he is understood to be interested in sorting out the future for the station.

Other big Hong Kong business names including Li Ka-shing and Richard Li are both understood to be watching progress on the potential deal carefully. Hong Kong press reports have also suggested that some kind of consortium could be put together with CCTV to take over the company.

Although this would be the first time that CCTV has bought a share in Hong Kong's television industry, it follows the recent acquisition by Chinese mobile phone operator China Mobile of a 20 percent share in Hong Kong-based satellite channel Phoenix Satellite Television (see China Media Intelligence, Volume 6, Issue 6 (19/6/06)). In 2001, CCTV and TVB did set up a joint venture to collaborate on programme exports and in some ways this deal, should it go ahead, could be thought of as an extension of that move. TVB is keen to get into the Chinese television market and CCTV is keen to expand its overseas presence. The deal would therefore be of mutual benefit.

CMI - 22/8/06