Beijing Gehua inks capital increase deal with China Digital TV CAS division
DetailsEditor | 30 December 2014
The Cyber Cloud subsidiary China Digital TV, provider of conditional access systems and services, is celebrating an extra cash injection from Beijing Gehua CATV Network.
china digitalOne of the largest cable TV operators in China, Gehua boasted over 5.5 million cable TV users at the end of June 2014, 3.9 million of which subscribe to digital two-way high definition services. It will invest RMB13.89 million in cash to take a 10% stake in Cyber Cloud which has deployed cloud service platforms in over 20 provinces, covering 80 million cable TV users and eight million IPTV users throughout the country.
The new deal follows the strategic partnership agreement between China Digital TV and Gehua announced on 16 April 2014, in which the companies agreed to establish a strategic partnership on cloud computing technology and related businesses, and to enter into an equity investment agreement.
"We are pleased to have reached this agreement with Gehua after the launch of our strategic partnership earlier this year," commented Lu Zengxiang, China Digital TV's acting chief executive officer and acting chief financial officer.
"We believe this partnership will be hugely beneficial both in promoting Cyber Cloud's cloud gaming platform among cable TV users covered by Gehua, and in demonstrating its value to other cable TV operators seeking to diversify into streaming platforms and cloud gaming. Cyber Cloud is in negotiations with a number of other IPTV and cable TV operators to explore more cooperation opportunities, which we hope will generate further upside to Cyber Cloud's business in the near future."