Spike Shareholders Approve PCCW Joint Venture
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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.