State-owned media group establishes privatization

May 08, 2008 | BY

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Shanghai Media Group Broadband (SMGBB) partnered with Intel Capital to facilitate the co-development of a wireless broadband and mobile technology service…

Shanghai Media Group Broadband (SMGBB) partnered with Intel Capital to facilitate the co-development of a wireless broadband and mobile technology service for high-definition TV programmes.

The partnership marks one of the first privatisations of digital media and broadband assets by a state-owned-enterprise (SOE) in China. Shanghai Media Group received US$12 million in financing from the deal.

Morrison Foester represented Intel Capital, while Allbright Law Offices acted as the company's PRC counsel to issue legal opinion. DLA Piper assisted SMGBB with its SOE privatisation restructuring. DLA Piper's team was led by Rocky Lee, partner and head of China venture capital and private equity, Jason Liu, associate from the Beijing office, and Jeff Greene, partner from the Shanghai office.

“This is an industry-first: a deal where a US fund has invested in a state-owned online audio-video business. The privatisation provides a new stage for foreign and domestic strategic alliances in this industry,” said Lee.

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