Taiwan’s Far EasTone Telecommunications Co. is buying the island’s biggest cable television operator in a US$2.3 billion deal backed by Morgan Stanley’s private equity unit.
The group is nearing agreement with MBK Partners LP for China Network Systems, which has 1.3 million subcsribers for its video-on-demand and other value-added services.
The Wall Street Journal is reporting the deal would allow Far EasTone to bundle its mobile phone services with China Network Systems’ cable and broadband offerings.
In turn, the integration will produce cost savings and a wider array of offerings.
The parties are moving to a final agreement in the coming days, according to WSJ which cites sources familiar with the situation.
Mobile service providers and cable operators are joining forces amid rising costs and growing consumption of mobile content.
John Malone’s Liberty Global Plc. is considering expanding its cable holdings in Europe and Verizon Communications Inc. is offering bundled cable, fixed-line, and mobile services to its US subscribers.
China Network Systems serves full digital services to one million users, enabling them to order on-demand video and other value-added services.
It is also has more than 250,000 broadband customers and commands the biggest market share in Taipei and the southern city of Kaohsiung.
– Contact us at [email protected]