YOU ARE AT:CarriersFar EasTone discussing $2.3B deal for Taiwan's largest cable co.

Far EasTone discussing $2.3B deal for Taiwan’s largest cable co.

Taiwanese telco Far EasTone and Morgan Stanley are reportedly close to striking a $2.3 billion deal with MBK Partners to acquire Taiwan’s largest cable operator, China Network Systems.

The deal would allow Far EasTone to provide a bundled package of phone and cable services. The company believes this would allow it to bring costs down for consumers and provide a broader range of services.

The Wall Street Journal reports the parties have already signed a memorandum of understanding and are in the final stages of working out the full agreement.

China Network Systems is the dominant cable provider in many major Taiwanese markets including Taipei, Taiwan’s capital city. The company has 1.3 million subscribers overall, 1 million of which are fully digital customers, as well 250,00 broadband customers

In order for telcos and cable companies keep up with content costs and mobile video demand, they have had to become more diversified to keep up with over-the-top providers such as Netflix. A trend of consolidation has swept the industries throughout the world.

In the U.S., AT&T and DirectTV are very close to solidifying a $49 billion deal. T-Mobile US and Dish Network have been rumored to be discussing a merger for quite some time. T-Mobile US’ parent company, Deutsche Telekom, has reportedly been shopping the “uncarrier” around to many different potential suitors including Comcast.

Investors outside the industry have also been trying to get a piece of the action. Liberty Global has shown interest in adding mobile assets to its European holdings, according to The Wall Street Journal.

MBK Partners, a private equity fund-management firm, has done quite well with its investment since acquiring China Network Systems in 2007.  It has reportedly returned substantial capital to its investors.

ABOUT AUTHOR

Joey Jackson
Joey Jacksonhttp://www.RCRWireless.com
[email protected] Joey Jackson is an editor and production manager at RCRWireless.com and RCRtv based in Austin, Texas. Before coming to RCR, Joey was a multimedia journalist for multiple TV news affiliates around the country. He is in charge of custom video production as well as the production of the "Digs," "Gigs," "How it works" and "Tower Stories" segments for RCRtv. He also writes daily about the latest developments in telecom and ICT news. An Oregon native, Joey graduated from the University of Oregon with a degree in journalism and communications. He enjoys telling the stories of the people and companies that are shaping the landscape of the mobile world. Follow him on Twitter at @duck_jackson.