Sony Makes Bid for Gala TV

(Reuters) – So-Net, the Internet unit of Japan’s Sony Corp (6758.T), is offering T$6 billion ($188 million) for a Taiwan cable TV firm being sold by private equity firm MBK Partners, Taiwan’s Commercial Times reported on Thursday.

Citing no sources, the business daily said Sony was looking to buy the cable content firm, Gala TV, to help push Japan’s acTVila Internet-based, on-demand TV portal into the Taiwan market.

Gala TV and So-Net’s Taiwan office declined to comment, the paper said.

MBK has put on sale its Taiwan cable TV operations, the biggest of which is China Network Systems Co (CNS), which could fetch some $2 billion. (See [ID:nTOE67H03F]).

Taiwan’s cable market has among the highest profit margins in the region, some analysts estimate, which is the main appeal of the asset to many private equity funds.

A high cable penetration rate of about 80 percent and steady cash flow also makes the industry attractive for investors.