China Digital TV Unit Cyber Cloud Signs Capital Increase Deal With Beijing Gehua

(RTTNews) - China Digital TV Holding Co. Ltd. (STV), a provider of conditional access systems and comprehensive services to China's expanding digital television market, announced that Cyber Cloud, an unit of China Digital TV, has reached a capital increase agreement with Beijing Gehua CATV Network Co., Ltd., one of the leading cable TV operators in China. As part of the agreement, Gehua will invest RMB13.89 million in cash to take a 10% stake in Cyber Cloud.

The deal is supplementary to the strategic partnership agreement between China Digital TV and Gehua announced on April 16, 2014, in which the companies agreed to establish a strategic partnership on cloud computing technology and related businesses, and to enter into an equity investment agreement.

Lu Zengxiang, China Digital TV's acting chief executive officer and acting chief financial officer, said: "Cyber Cloud has deployed cloud service platforms in over 20 provinces, covering 80 million cable TV users and 8 million IPTV users all over the country. We believe this partnership will be hugely beneficial both in promoting Cyber Cloud's cloud gaming platform among cable TV users covered by Gehua, and in demonstrating its value to other cable TV operators seeking to diversify into streaming platforms and cloud gaming. Cyber Cloud is in negotiations with a number of other IPTV and cable TV operators to explore more cooperation opportunities, which we hope will generate further upside to Cyber Cloud's business in the near future."