Sun TV acquires stake in Jade Bird's film house
( 2002-06-11 09:40 ) (1 )

Sun Television Cybernetworks Holdings Ltd said on Sunday it signed a letter of intent to acquire 50 per cent equity interest in the film house Beida Huayi from Beida Culture Investment Ltd, a unit of the Hong Kong-listed mainland software maker Beida Jade Bird.

The move marked Sun Television's transition to a multi-media company, a company spokesman said.

The company will be renamed to Sun Media Group Holdings Ltd, aimed at becoming a leading Chinese content provider worldwide, company sources said.

Beida Huayi was involved in the production of the Oscar Winning movie "Crouching Tiger, Hidden Dragon" and a number of other popular movies. It also has an equity interest in a mainland comedy production company and a film distributor.

According to the letter of content, Sun Television has an option to raise its equity interest in Beida Huayi to 100 per cent within a year.

Beida Huayi is committed to reach a guaranteed turnover of 140 million yuan (US$16.9 million) with pre-tax profits of 20 million yuan (US$2.4 million) 12 months after the acquisition.

No financial details of the acquisition, such as the price, were given, but Sun TV said the finalization of the deal would depend on due diligence, which will be completed within the next few weeks as well as on legal advice.

Analysts said the plan is expected to bring in more revenue for Sun TV in the future and help it enter the film industry. The group also clinched a strategic partnership with Beida Jade Bird and Beida Culture to share media resources, a cable television network and resources of content provision.

Founded in April 2000 by famous anchorwoman Yang Lan, Sun TV broadcasts and distributes across the globe.