Chinese online gaming group courts Green Packet for possible tie-up

PETALING JAYA: Green Packet Bhd has been identified by a Chinese online gaming group for a possible tie-up to pursue a game publishing business, sources said, adding that the Chinese group is also mulling a stake buy in Green Packet.

According to sources, the company is Chinalisted Zhejiang Dilong Culture Development Co Ltd. That group has a subsidiary called MSY which enjoys more than two billion yuan (RM1.2bil) in annual revenue from gaming and content businesses.

The Chinese party is in the midst of setting up a joint-venture to operate a mobile game publishing platform with a subsidiary of Green Packet, a technology, media and communication services company.

The move is not surprising, considering that the global games market generated US$116bil (RM454bil) in game software revenue in 2017. Mobile gaming revenue contributed US$50.4bil of that, going by reports.

“Green Packet’s ready customer base of telecom operators in South-East Asia and its recent foray into digital services encompassing fintech and media may well be the reason for the partnership. The Chinese listed group is interested in Green Packet’s market access and ready payment platform,” said a source.

Green Packet has in recent months expanded its scope of business to include media and content.

The company’s start of its media play has been reportedly linked to the digitalisation efforts of terrestrial TV undertaken by MYTV Broadcasting Sdn Bhd.

Last month after months of speculation, Green Packet bagged a contract to supply settop boxes for MYTV Broadcasting for two years. MYTV is the company tasked by the Government to handle the free-to-air TV migration from the existing analog system to digital.

Green Packet said under the contract, MYTV would issue purchase orders from time to time to supply up to 3.6 million set-top boxes. It is understood that these set-top boxes will be the devices in homes that will receive the new free-to-air digital signals for home TV viewing, replacing the old antennas.

While the jury is still out on whether this entire media play will work out for Green Packet, a source said this recent tie-up with the Chinese party was an extension of its strategy to go big on the media and content business.

“The MYTV set top box is not a one-off deal but was a start to Green Packet’s strategy to grow its content and media platform,” said one source.

Notably, the company had late last year also partnered with Hong Kong’s recently-revived TV station, Asia Television (ATV) to operate three digital free-to-air channels in Malaysia, suggesting its commitment to this new business interest.

What caught the attention of the market with regards to this deal was that as part of the partnership, ATV will be pumping in HK$50mil (about RM26mil) into a JV company called Kiple Media to operate broadcasting television channels in Malaysia while Green Packet does not have to stump up anything.

Green Packet and ATV are expected to jointly operate three broadcasting television channels in Malaysia which may comprise a Chinese language movie channel, a Chinese language general entertainment channel and a home shopping channel.

Green Packet’s media and content business is part of its move to reinvest itself into the technology space, the other two areas being fintech and Internet-of-Things.

At last look, shares in the company finished at 48.5 sen.