Spike to Cement PCCW Venture
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Australian online entertainment content and services provider Spike Networks is set to formalize its joint venture (JV) with broadband service provider Pacific Century Cyberworks (PCCW).
Spike shareholders will vote on the formal agreement with Hong Kong-listed PCCW in June.
Under the proposed deal, Spike will hold a 70 percent interest in the JV, while PCCW will acquire the remaining 30 percent with a two-year option to increase its equity to half.
PCCW will also take a five percent interest stake in Spike and has an option to acquire an additional ten percent, exercisable at anytime within 12 months.
The deal also allows for the possibility for PCCW and Spike to work together in relation to a number of alliances involving the distribution and promotion of SpikeRadio over PCCW's broadband network.
Last month Spike opened an office in Hong Kong, adding to existing bases in Australia and Japan.