The National Communications Commission (NCC) yesterday said that it will consider all factors when reviewing Ting Hsin International Group’s acquisition of cable service operator China Network Systems (CNS) to determine if the deal would bring undue influence to media content.
“We have yet to see anything that would generate concerns,” commission spokesperson Yu Hsiao-cheng (虞孝成) said.
Ting Hsin was founded by the Wei family from Changhwa County, but it has become famous for being the largest manufacturer of instant noodles in China. This has led to questions about whether the group used Chinese funding to purchase CNS, which local media estimates say cost about NT$67 billion (US$2.234 billion).
Although Ting Hsin does not own any television channels, CNS does serve as an agent for several channels, including TVBS and CtiTV News, representing them in negotiations with other cable operators.
Critics have voiced concerns that Ting Hsin might be able to influence these news channels not to cover food safety issue involving Ting Hsin if the CNS deal is approved.
Citing last year’s food scare involving adulterated oils, in which Ting Hsin was involved, they questioned if the story would have come to light had CNS been owned by Ting Hsin at the time.
Yu said CNS serves as agent for many channels and did so before the sale.
“Ting Hsin is a fourth-generation telecom operator and is branching out into cable operations and being a channel agent through this transaction. We will consider all factors when they submit the application on changing the shareholding structure, including whether the acquisition could bring about undue influence over media content,” Yu said.
Andy Hsieh (謝煥乾), director of the commission’s communication management department, said the commission will check into the background of the major shareholders in the deal during the review of the shareholding structure, which has yet to be submitted to the commission.
Hsieh said that the Ting Hsin-CNS deal may be less complicated than the Want Want China Times Group’s bid to buy CNS two years ago because Ting Hsin does not own any television channels. Want Want owns both CTiTV News and China Television.
The same questions about media content and undue influence would still exist if CNS was bought by another company, Hsieh said, adding that it is unlikely any cable operator would be able to conduct a massive cover-up of a story in this day and age.
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