The investment hands the investors around 18% of shares in PPC unit PCCW OTT, which will use the cash on production of original content, and further allow the company to build and develop its video streaming technology, a Hong Kong filing noted.
PCCW OTT is looking to expand its presence in its existing markets in Asia, which includes territories such Hong Kong, Singapore, Malaysia, and looks to further grow in territories outside them.
The OTT service currently runs in 24 markets globally, and includes video streaming services under the Viu and Vuclip brands as well as a music streaming service under the MOOV brand.
Hony has been given the option of raising its stakeholding, meaning the new investment group could own 20.6% within the next nine months.
PCCW Media will remain as the largest shareholder of PCCW OTT.
Janice Lee, managing director of PCCW Media Group, said: “Our focus on content, pricing and technology that are locally relevant in various markets, together with our fast tracked rollout across the region, has enabled Viu to become a leading OTT video service in Asia.
“We are very excited to have Hony, Foxconn and Temasek join us as strategic shareholders. Bringing these reputable partners in the business will support our current plans and strengthen our leading position in the market with the introduction of more locally relevant and original content, and technology to support innovative product development – all of which are beneficial to our ecosystem comprised of users, advertisers and business partners.”
Viu, which is considered an Asian rival for Netflix, hit six million subscribers in the region this April.
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15 August 2018 @ 17:00:00 UTC