PCCW to close Taiwan NOW unit as it launches JV
Tuesday June 19, 7:55 AM EDT
HONG KONG, June 19 (Reuters) - Pacific Century CyberWorks (0008) said on Tuesday it will close the unit initially responsible for its Network of the World Internet and television project in Taiwan as it launches a new joint venture with local cable operator ERA Group.
PCC Taiwan will cease operating and all of its 12 staff are expected to be either laid off or transferred to the new venture -- if they are needed -- in two weeks time, said Raymond So, executive vice president of PCC Taiwan.
"But this does not mean the end of the NOW project in Taiwan. Details of its future will be announced later this month," he said.
PCCW will invest "more than US$10 million" for a 55 percent stake in the joint venture, PCCW ERA, with ERA holding the remainder, So said. The venture will provide Internet content, such as entertainment and news, and Internet access services on a roughly 50/50 basis.
So said the joint venture will not be related to PCCW's NOW project, which combines entertainment-related television programming with website content.
PCCW is expected soon to reveal its new strategy for its consumer Internet and multimedia businesses, including NOW. The service had once been core to the company's strategy but like many Internet firms has found it difficult to connect with a revenue-generating audience. Last year, PCCW invested US$50 million in ERA Group's ERA Communications unit as part of a content production deal for NOW. So said that investment also was unrelated to the joint venture.
ERA Group, one of Taiwan's largest cable television providers, currently has about 90 staff running its content and Internet access services while PCC Taiwan has 12 mostly marketing staff, he added.
PCCW will retain full control of its local website operator Netvigator Taiwan, which will not be rolled into the PCCW ERA joint venture. However, Netvigator Taiwan will cut its staff to four from about 20, So said.
"Although PCC Taiwan is going to be integrated into the new venture, Netvigator Taiwan is not a part of that transaction," he said.
The scale down of Netvigator was a necessary step for PCCW to cut costs because the website was not able to make any money from its 500,000 registered users who had been receiving email and homepage services for free, So said.
So said Netvigator Taiwan will be integrated into its Hong Kong's arm to develop e-commerce business.
©2001 Reuters Limited.
c.moreover.com |
