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Analysis: Can "SUN" Light "Sina"?
Chinese portal web site Sina.com has formally announced its teaming up with the SUN-TV Cybernetworks Ltd. to build the largest homegrown broadband multi-media platform, an event and happy tidings auguring the rise of a lackluster Internet-media economy in China, according to a view close to insiders.
After paying 8 million US dollars and offering 4.6 million of its newly issued stocks, Sina.com will become the largest shareholder of SUN-TV, with 29 percent of its shares. Yang Lan will in time get a 10 percent share and turn out with a 16 percent increment to make herself the largest shareholder of Sino.com in the coming 18 months. After completion of this strategic alliance, Jiang Fengnian and Wu Zheng will officiate as co-chairmen on the Board of Directors of Sina.com, Mao Daolin and Wang Yan serve as CEO and president and Yang Lan still keep on staying as president of the Directorate of SUN-TV.
Insiders say that Sina.com has been the largest Chinese portal and SUN-TV the largest unique provider of TV repertoires in China. On the basis of a strategic alignment of forces by the two, with a full play given to each other's advantages, things will be launched on a greatly enlarged scale when a multitude of TV and Internet services is to be provided.
Jiang Fengnian and Wu Zheng both shared the view that breakthroughs might be made in saying goodbye to conventional media services and that for ordinary users their vistas and outlook of the world will be most widely extended. Drab coverage will be a thing past. Ad solicitors will accordingly be benefited by variegated advertising and bountiful interest gains at a low cost.
Insiders pointed out that the newly organized "SUN--Sina" should not be put on a par with "AOL - Warner Inc " or as a "multi-media fleet" having been brought into being in predicting a "multi-media" time in China. However, since we are economically facing the rigor of "winter" it must be a piece of happy news for us to have this new launched conglomerate formed of Sina.com and SUN-TV in China.
A stark fact is that there was a NASDAQ "cold wave" that had hit the country's portal resulting in a slump of China's Internet cause. Almost all web com. especially those that had got listed had been forced to find a way out. Being the largest Chinese web site of the world, it is told Sina.com is still run with over 100 million US dollars of operation funds. But continued money losses had pinpointed many problems as Wang Zhidong giving up his presidency and, amongst others, failure of mail transmission and rumors run wild about charges on users affecting normal operation of Sina.com. As to SUN - TV, though listed, yet having been on a bumpy road and money tight, it can by no means be said that it had fared well though it has been outstanding in filming documentary programs and distribution. After defying all the adversities met, and now as is seen from the wedlock of Sina.com and SUN-TV, a time of warmth can be said to have come to be enjoyed in the way SUN - TV is to be upgraded with many a varied colorful TV programs and repertoires.
Eminent insiders pointed out that sina.com wedded itself to SUN -TV can by no means deemed as a stroke lasting all the time. This is because nothing can be optimistic for a large amount of widely decollated shares, a divided Board and management problems still exist in the conglomerate of the two wedded parties. It also remains still a problem whether Sina.com can lift itself from a big load of debt. It goes without saying as a vanguard force pioneering the cause of developing a new homegrown economy, people can only hope for a "SUN" to light "Sina" on a bright prosperous road in China.
Sina Joins Hands with SUN-TV
Chinese portal web site Sina.com announced its teaming up Tuesday with the SUN-TV Cybernetworks Ltd. to build the country's largest broad-band portal and multi- media platform.
After paying 8 million US dollars and offering 4.6 million of its newly issued stocks, Sina.com will become the largest shareholder of SUN-TV, with 29 per cent of its shares.
By People's Daily Online
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