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.

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