Tsinghua Tongfang has decided to spend CNY150 million on acquiring 40% stakes of Shanghai BesTV Media Company and BesTV Network Technology Development Company, respectively. The two companies are wholly-owned by Shanghai Media Group.
Tsinghua Tongfang will first spend CNY100 million on acquiring a 22.82% of the stake of BesTV Network Technology Development Company from the company's former shareholder Shanghai Tongwei Investment Company and Zhang Xu, then it will spend CNY45.2 million as additional investment to increase the stake share to 40%.
In the meantime, Tsinghua Tongfang and other shareholders will invest CNY4.8 million into Shanghai BesTV Media Company to hold 40% of the latter's stake.
After allying with SMG, the two parties will jointly work as an operators and this will upgrade Tsinghua Tongfang's business to a new stage where it will begin focusing more on IPTV services.
