No way!
Thousands of Hong konger staff would be dismissed?
No more quality Hong Kong dramas to spice up my daily boring home-to-and-fro-home life?
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(photo of Sir Run Run Shaw by hkchcc.org)
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To clarify my 'fear' and doubt, I did a check online and found out, in relief, that TVB station might just only be sold to some tycoon or cash-rich businessmen from Taiwan. Phew~
Although TVB station is not winding down their business, which is for sure, will the arrival of a new hedge-man change anything internally? Will the quality of the programmes be affected? Will there be an internal reconstruction? I doubt things will remain the same again, because the new guys had to do something to show their presence at the least.
Anyway, here's the original article I read regarding the company's fate...
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By Isabella Steger
Please see Corrections & Amplifications below
While one company’s succession struggle is playing out much like a TV drama, control at Hong Kong’s iconic TV station is being passed on peacefully.
Hong Kong broadcaster Television Broadcasts Ltd.’s legendary co-founder and chairman, the 103-year-old Sir Run Run Shaw, has finally made a decision to sell his 26% stake in the company, reports The Wall Street Journal.
Other potential buyers that had been floated in the past include the chairman of Chinese property developer Country Garden Holdings Co., and more controversially, the vice chairman of Hong Kong developer Henderson Land Development Ltd. Peter Lee, son of billionaire Lee Shau-kee. The possibility that one of the Cantonese-speaking world’s most iconic media institutions could be sold to a tycoon sparked debate in Hong Kong over whether such a move could compromise TVB’s freedom of speech.
The consortium buying Sir Run Run’s stake includes private equity firm Providence Equity Partners LLC, Charles Chan, chairman of Hong Kong-listed holding company ITC Corp. Ltd., as well as Taiwanese businesswoman Cher Wang, chairman of smartphone maker HTC Corp.
The value of the stake is not clear, but based on Wednesday’s closing price the stake is worth some HK$5.23 billion (US$670.5 million). Vivek Couto, executive director at media research firm Media Partners Asia, says the deal is a way for TVB to finally unlock some of its value, particularly in its China business, as there is little room for much growth in Hong Kong where the broadcaster commands some 80% of market share.
“No one was throwing any money at it [TVB]…now it’s a good opportunity for them to finally do something in China,” said Mr. Couto.
It’s also worth noting that this isn’t the first time a Taiwanese tycoon has shown interest in Hong Kong’s media industry. Tsai Eng-meng, who controls the snack giant Want Want China Holdings Ltd., bought a minority stake in TVB’s ailing competitor, Asia Television Ltd. in 2009, though the broadcaster remains mired in an ownership struggle.
A person with knowledge of the deal said the the involvement of cash-rich Taiwanese investors in Hong Kong media satisfies Taiwanese lawmakers and regulators who might be concerned that influential Chinese-language broadcasters become too closely aligned with mainland Chinese interests. TVB operates TVBS, a top three player in Taiwan’s TV industry.
TVB shares are down 5% on Thursday midday and ITC up 15%.
Corrections & Amplifications: The private equity firm buying a stake of TVB is Providence Equity Partners. An earlier version of this article incorrectly referred to Providence Equity Partners as Providence Capital Partners.
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Source: http://blogs.wsj.com/exchange/2011/01/27/tvbs-peaceful-transfer-of-power/
