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The following is issued on behalf of the Broadcasting Authority:
At a meeting held on April 22, 2008, the Broadcasting Authority (BA) considered the findings of its investigation into compliance with the cross-media ownership provisions under the Broadcasting Ordinance (Cap. 562) by entities in connection with PCCW Media Limited, a domestic pay television programme service licensee, and Hong Kong Economic Journal Company Limited (HKEJ Co.). Based on the evidence collected and having taken legal advice, the BA concluded that PCCW Media had not contravened the cross-media ownership provisions under the ordinance.
Nonetheless, the BA considered that additional safeguards should be put in place to ensure that any possible cross-media ownership concerns would not arise in future. Accordingly, the BA secured relevant undertakings from Mr Richard Li Tzar-kai, the individual trustees of the trusts that indirectly hold shares in PCCW Limited (PCCW Trusts), PCCW Limited (PCCW) and PCCW Media to report to the BA on any changes to the structural and corporate relationship relating to the operations of PCCW and PCCW Media, and any changes related to the PCCW Trusts.
The BA announced on January 5, 2007, the commencement of the investigation arising from the reported acquisition of shares in HKEJ Co. in August 2006 by Mr Richard Li, and Mr Li's public statements towards the end of 2006, which appeared to raise possible cross-media ownership concerns. During the investigation, the BA and its legal advisors thoroughly examined a total of 36 submissions (including joint submissions) provided by 49 entities (companies and individuals), relating to HKEJ Co., PCCW Media including its ultimate holding company PCCW and various trusts established by Mr Li, in which the shares of PCCW and HKEJ Co. are vested. In addition, the minutes of the relevant boards and committees of PCCW and PCCW Media were examined. Based on the information gathered during the investigation and the legal advice received, the BA concluded that Mr Li was not exercising control of PCCW Media within the meaning of the ordinance. Hence, based on the evidence collected, the BA concluded that PCCW Media had not contravened the cross-media ownership restrictions under the ordinance.
The BA would like to express its appreciation to various entities concerned for their cooperation in the investigation.
Details of the findings of the investigation are set out in the Annex.
Ends/Friday, May 2, 2008
Issued at HKT 17:30
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