[00-7-13] Spike Networks Gets Leg-Up In Asia
By John Stackhouse, Computer Daily News.
SYDNEY, AUSTRALIA,
13 Jun 2000, 1:22 AM CST
Spike Networks Gets Leg-Up In Asia 06/13/00 SYDNEY, AUSTRALIA, 2000 JUN 13 (NB) -- By John Stackhouse, Computer Daily News. Shareholders have given approval to Australia-based Spike Networks [AUS:SPK] for a joint venture with Hong Kong-based Pacific Century CyberWorks.
Sydney-based Spike also has offices in the US, where it operates SpikeRadio, a youth-oriented Internet "radio station." Most of its business comes from Web site design and management in Australia, the US and Japan.
Pacific Century CyberWorks, controlled by Hong Kong's Li family, earlier this year successfully bid about US$35 billion in cash and shares to acquire Cable & Wireless HKT, Hong Kong's dominant phone company. It has also announced a A$20 billion ($11.82 billion) joint venture with Australian telco Telstra [NYS:TLS] to set up an Asian Internet backbone telecoms company and a regional mobile phone operation.
The new joint venture with Spike, to be known as Spike CyberWorks, will seek to "dominate the e-business and digital solution market in the Pan Asian region," the partners say.
Spike will have 70 percent of the action, CyberWorks 30 percent. But CyberWorks will also get a piece of Spike. A subsidiary of the Hong Kong company, Web Commerce, has agreed to inject A$6.3 million ($3.72 million) into Spike in return for a 5 percent stake.
It has an option to acquire a further 10 percent for A$16.35 million (US$9.66 million).
Spike Networks reported revenue of A$7.3 million ($4.31 million) and a net loss of A$12.8 million ($7.56 million) for the six months to December 1999. It said around A$6 million ($3.54 million) of the loss was attributable to the costs of establishing the "SpikeRadio" operation in the US.
The company's pugnacious co-founder and chief executive officer, Chris O'Hanlon, resigned in April due to continued illness.
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Reported By Newsbytes.com, newsbytes.com
01:22 CST
(20000613/WIRES ASIA, ONLINE, TELECOM, BUSINESS/)
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