[SatNews] ..." will offer all consumer screens inclusive home TV, mobile devices, or in-vehicle entertainment system anytime anywhere for China’s 1.4 billion population and the rest of Asia. ”
CMMB VISION HOLDINGS LTD. (“CMMB Vision” or the “Company”, together with its subsidiaries, the “Group”) (Stock Code: 471.HK), an investment company developing and promoting the China Mobile Multimedia Broadcast (CMMB) standard, has agreed to acquire 51 percent of the leading full-service satellite and digital TV provider, Dish-HD Asia. The $6 million deal, subject to regulatory approval, will enable CMMB Vision to jump-start its planned mobile multimedia service platform in China and become the first converged satellite service provider in Asia to offer an integrated entertainment environment across consumers' screens and devices.
The CMMB and related Next Generation Broadcasting-Wireless (NGB-W) standards are more cost-efficient, next generation alternatives to Europe's DVB-SH standard for digital video broadcasting to handheld devices. CMMB Vision will pair Dish-HD Asia's 76 satellite TV channels, Internet data services, and planned 4K ultra-high-definition services with its platform and recently acquired satellite capacity to reach China's 1.4 billion population and the rest of Asia. The Dish-HD Asia acquisition also provides CMMB Vision with a global management team with extensive experience in satellite operations.
CMMB Vision intends to replicate the Chinese model with turnkey solutions to deploy in other Asia markets. Dish-HD Asia is a related company to Dish Network, the second largest satellite pay-TV provider in the U.S.
CMMB Vision entered into the Share Purchase Agreement with Mr. Yu Yueh-Lung for the acquisition of 5 percent equity interest in Soaring Idea Holdings Limited (“Soaring”) and an option to purchase an additional 46 percent equity interest in Soaring within 6 months at a consideration of US$2,000,000 and US$4,000,000 respectively.
Currently, subject to regulatory approval, Soaring will be entitled to a 51percent controlling stake in Dish-HD Asia Satellite Limited (“Dish-HD Asia”), which is a leading and rapidly growing full-service satellite digital pay-TV provider that delivers high-definition TV programming directly to consumer homes in the Greater China Region. Dish-HD Asia possesses comprehensive service operating platform, global management experience, abundant Hollywood content distribution rights, diverse customer franchise over Taiwan, Hong Kong and China, and next generation set-top box technologies. Moreover, Dish-HD Asia is currently delivering 76 satellite TV channels of mostly high-definition programs, and planning to launch 4K ultra-high-definition services as well as satellite-based Internet data services in early 2015.
Dish-HD Asia was founded by Asia Satellite Telecommunications Company Limited, and EchoStar Corporation, which in turn is a related company to Dish Network, the second largest satellite pay-TV provider in the U.S.
Mr. Charles Wong, the Founder and President of CMMB Vision, said “The acquisition will enable CMMB Vision to immediate leverage and incorporate Dish-HD Asia’s existing comprehensive satellite-based services platform, turnkey expertise, global management experience and valuable content partnerships with leading Hollywood content providers to jump-start the Company’s planned satellite-based mobile multimedia and data delivery service platform with Chinese media partners in China. It also enables us to become the first converged satellite service provider and expand our wireless delivery infrastructure to include both mobile and DTH satellite platform to offer integrated entertainment, multimedia, and data services across all consumer screens inclusive home TV, mobile devices, or in-vehicle entertainment system anytime anywhere for China’s 1.4 billion population and the rest of Asia. ”
“Looking forward, together with the rapid development of cultural industry and more diversified mobile devices, as well as over 1 billion mobile user base in China, there will have ample demand in multimedia and big-data services and create huge business opportunities to the Company. We believe that satellite-based mobile and DTH satellite multimedia business and its related services will develop quickly with great potential returns to the shareholder due to the rapid increasing demand on Hollywood contents and data delivery through high price-to-performance satellite-based mobile multimedia platform in China and the rest of Asia.”