China Digital TV Announces Strategic Partnership Agreement with Beijing Gehua
BEIJING, April 16, 2014 /PRNewswire/ -- China Digital TV Holding Co., Ltd. (NYSE: STV) ("China Digital TV" or the "Company"), the leading provider of conditional access ("CA") systems and comprehensive services to China's expanding digital television market, today announced that it has reached an agreement with Beijing Gehua CATV Network Co Ltd ("Gehua") to establish a strategic partnership on cloud computing technology and related businesses, to cooperate on overseas business expansion, and to enter into an equity investment agreement.
Pursuant to the agreement, Gehua will make an equity investment in the Company and hold a 10% stake in Cyber Cloud, a subsidiary of China Digital TV. Meanwhile, China Digital TV will help Gehua build and improve its full media cloud computing platform. As part of this effort the two sides will aim to integrate the content from various media, cross-platform applications, streaming application platforms, cloud gaming and other relevant service offerings. Leveraging this cloud-computing platform, the two companies will integrate content resources and establish a cloud-based content platform. The cooperation will help improve user experience in the areas of gaming, somatic gaming, education and travel applications. In addition, China Digital TV and Gehua will also strengthen cooperation for multi-end interaction, mobile business and other key areas that will allow them to explore further mobile Internet business opportunities.
The two sides will also jointly develop their opportunities overseas by leveraging their respective advantages in the areas of technology, operations and management.
"We are delighted to establish this strategic partnership with Gehua and leverage our mutual strengths to provide users a superior cloud computing platform," said Mr. Zhu Jianhua, China Digital TV's Chairman and CEO. "As China's leading television cable operator, we believe that Gehua's significant role in the development of interactive digital and high-definition TV make it an ideal partner for us. Cloud computing is core to China Digital TV's long-term development strategy and this agreement with Gehua marks a major step forward in this area. We believe the partnership with Gehua will help us elevate our cloud computing offer to a new level and further strengthen our TV services."
About China Digital TV
Founded in 2004, China Digital TV is the leading provider of CA systems and comprehensive services to China's expanding digital television market. CA systems enable television network operators to manage the delivery of customized content and services to their subscribers. China Digital TV conducts substantially all of its business through its PRC subsidiary, Beijing Super TV Co., Ltd., and its affiliate, Beijing Novel-Super Digital TV Technology Co., Ltd., as well as subsidiaries of its affiliate.
For more information please visit the Investor Relations section of China Digital TV's website at http://ir.chinadtv.cn.
About Beijing Gehua CATV Network Co Ltd
Approved by Beijing Municipal Peoples Government, Beijing Gehua CATV Network Co Ltd (BGCTV) was founded in September 1999. BGCTV is principally engaged in the development, construction, operation, management and maintenance of cable radio and television networks in Beijing. The Company primarily provides the reception, relay and transmit of radio and television programs, the video on demand, network information services, Internet access service based on cable television network, value added service for Internet data transmission, domestic VoIP service, and advertising design, production and publication via cable television, etc. In 2001, BGCTV was listed at the Shanghai Stock exchange (Stock code: 600037), which is China's first listed cable network company. In addition, the Company is one of the earliest pilot radio and television enterprises to test three-network convergence and hi-tech enterprise in Beijing as well. At present, BGCTV has over 5 million cable television users, among which, 3.8 million users subscribe digitalized HD two-way service.
Investor Relations Manager
Tel: +86-10-6297-1199 x 9780
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Tel: +1-212-333 3810
SOURCE China Digital TV Holding Co., Ltd.