Taya Communications and Hong-Kong-based Star, the television and satellite company of News Corp. owned by Rupert Murdoch have signed a strategic cooperation agreement in television and Internet. The two companies will bid in the designated news and music channels, and coordinate a group to bid in the tender for another commercial channel.
The agreement includes setting up an Internet and television venture in the initial stage in the music sector, operating under the V brand name (Star's music channel in Asia), at an investment of $5 million. Star holds 10% of the venture, and received an option to increase its investment to 50%.
The venture will also include the setting up of a vertical music portal, which will offer content in various styles of music, and bid for the franchise for the designated television music channel. The portal will be managed by Tal Berman.
According to the agreement, Taya Communications will be Star's representative in Israel, taking preference in cooperation in other spheres as well. Star is managed by Rupert Murdoch's son, James Murdoch, who arrived in Israel to sign the agreement.
Taya Communications general manager Ami Geniger said that the agreement constituted a breakthrough. "I always believed that ultimately media and content companies in Israel would be representatives of the world's largest players, and we're seeing a step in this direction. After all, we didn't enter the agreement only in order to set up a music portal."
News Corp. is the world's second largest media group, after Time-Warner, and its assets are estimated at $15 million. The Star chain was set up in 1991, and it broadcasts by satellite to Asia and the Midle East. Star currently broadcasts over 30 channels to 300 million people in 53 countries and seven languages.
Taya Communications is owned by Taya Investments (49%), Gmul (18%) and the public. The public deals in the maintenance, management and operation of the communications and content business of the Taya group, one of the owners of Herzliya Studios, United Studios, United Advertising Broadcasts and Noga Communications.
Published by Israel's Business Arena on 25 June, 2000