RealTime IT News

Spike Shareholders Approve PCCW Joint Venture

Digital solutions and multimedia provider Spike Networks has obtained shareholder approval for its joint venture (JV) with Hong Kong-listed Pacific Century Cyberworks (PCCW), to be known as Spike Cyberworks.

Under the JV, Spike will hold a 70 per cent interest in Spike Cyberworks, and PCCW, through a wholly-owned subsidiary, will hold the remaining 30 per cent. PCCW has been granted a two-year option to increase its stake in the JV following the Spike shareholders general meeting this week.

As part of the deal, PCCW's indirectly wholly-owned subsidiary, Web Commerce, has agreed to inject AUS$6.34 million (US$3.8 million) in return for a five percent stake in the JV, with the option to increase to 10 per cent in the future.

The JV aims to dominate the e-business and digital solutions market in the Pan Asian region, providing a potential distribution network for Spike content, including Spike Radio, in return for Spike services which have already been used to redesign the PCCW Web site.

The two companies have been working together through the PCCW Hong Kong operation since March, when the branch was established.