BEIJING: Internet portal Tom.com has confirmed an RMB5 million
(US$600,000) venture with a China-based publisher in its effort
to build its China print media platform.
Tom.com will take a 70 per cent stake in the joint venture, with China
National Publications Import and Export Corporation (CNPIEC) holding the
remainder of the shares.
The move follows the company's recent acquisition of stakes in
publishing businesses in Hong Kong and Taiwan.
The portal acquired a 50 per cent stake in the Chinese-language weekly
Yazhou Zhoukan from Ming Pao Enterprise for HK$60 million (about
US$7.7 million) in March.Two months later it acquired PC Home and
Cite, the largest book and magazine publisher in Taiwan.
Sing Wang, chief executive officer and executive director of Tom.com,
said: "CNPIEC has ample publishing experience and a wide distribution
network in the mainland. It also works closely with mainland authorities
and other industry players. All this will facilitate Tom.com to
introduce overseas print media to the China market and localise them to
suit the needs of the mainland market."
In 1999, the value of books published in mainland China totalled RMB43.6
billion. Total magazine advertising revenue reached RMB900 million in
the same year, an increase of 25.1 per cent over 1998.
Meanwhile, Tom.com subsidiary YC Advertising and partner Starway Sport
and Culture Development are to pay an estimated US$5 million a
year to secure the commercial rights for the Chinese Basketball
Association (CBA) games. Confirmed this month, the franchise covers
three CBA seasons up to 2003.
The CBA exclusive commercial rights granted to Tom.com include rights to
title sponsorships, advertising, TV broadcasting, official sponsorship,
usage of the league logo and images of players. It also includes the
marketing rights to the official website, promotional activities of the
club officials and team players, the fan club and league merchandise
marketing rights.
