Vivendi-owned Canal+ inks $300 mln stake buy in Asian OTT service Viu (updated)

Pccw

21/06/2023 07:19

(Adds background, details in para 2-6, adds Canal+ comments)
       June 21 (Reuters) - Vivendi  VIV.PA  -owned French
television channel Canal+ will acquire a stake worth $300
million in Hong Kong-based PCCW's  0008.HK  over-the-top
streaming platform Viu.
    Canal+ has made an initial investment of $200 million,
giving it a 26.1% stake in the OTT service, with the payment of
the remainder subject to fulfilment of regulatory approvals and
clearances, PCCW said on Wednesday.
        The French broadcaster will also have the option to make
an additional investment in Viu, which could take its stake to
51%. 
  
        The deal will bolster the operations of Canal+ in Asia
and expand Viu's global footprint.
  
        Viu, present across Asia, the Middle East and South
Africa, reported an over 36% jump in revenue to $250 million for
fiscal 2022, but incurred an unaudited loss after tax of $143
million for the period.
  
        "The aggregate equity investment of US$300 million is
intended to cover Viu’s financing needs until it is profitable,"
PCCW said.
  
        Jacques du Puy, international chief executive at Canal+
said the deal will support "synergies with existing operations
in Vietnam and Myanmar as well as in Africa and Middle East." 
  
        PCCW is controlled by billionaire Richard Li, who also
established HKT Trust and HKT Ltd.  6823.HK 
  
        
  
        
  

 (Reporting by Rishav Chatterjee in Bengaluru; additional
reporting by Ayushman Ojha; Editing by Sonia Cheema)
 ((Rishav.Chatterjee@thomsonreuters.com;))