Intel strengthens relationship with Pacific
By Shane Abrahams
Monday, August 02 1999
HONG KONG--Intel will invest US$50 million in Richard Li's Pacific Century
The investment is to be made in Pacific Century CyberWorks, which is to be the
new name of Tricom Holdings, following PCG's acquisition of a controlling
interest in the company.
Intel also announced that it and PCG would allow their joint venture Pacific
Convergence Corporation (PCC) to be acquired by Pacific Century CyberWorks.
The acquisition of PCC combined with Intel's planned investment in Pacific
Century CyberWorks, should give Intel the equivalent of 13 percent stake in
Pacific Century CyberWorks.
PCC was established in 1998 to bring high speed Internet services to Asia. Intel
also announced it will supply comprehensive set-top and server-based solutions
that will deliver the combined broadcast and Internet services generated by PCC.
According to an Intel spokesperson, as well as providing capital and hardware,
the company is providing technology support around the concept of broadband
deployment in Asia.
Alex Arena, managing director of Pacific Century CyberWorks said: "The
injection of PCC into Pacific Century CyberWorks is a logical step. Both PCC
and Pacific Century CyberWorks will benefit from the potential synergies of
developing the broadband service business through one company. In addition,
Intel's technology expertise and Internet solutions are expected to provide
strategic value to our service."
PCC's service is expected to be launched in the first quarter of next year, and the
Intel spokesperson said they were now moving into the second stage of the
development, where a cash injection was required to make the concept a reality.
Intel has a Corporate Business Development Group, which provides venture
capital support to entrepreneurs. So far, they have invested US$3.5 billion
Within Asia, the group has also invested in Chinese portal Sohu.com, and
Australia's 80-20 Software. However, the company spokesperson said the
investment in Pacific Century CyberWorks was the largest in the Internet space in