Beijing :China Digital TV Holding Co., Ltd. (NYSE: STV) (“China Digital TV”), the leading provider of conditional access systems to China’s expanding digital television market, has announced that it has entered into a definitive agreement to invest in 3DiJoy Corporation (“3DiJoy”), a leading provider of motion-sensing video game solutions for cable set top boxes (STBs), PCs, and other consumer electronic (CE) devices in China.
Subject to the completion of customary due diligence and closing conditions, China Digital TV will invest US$6 million in cash to acquire a 24% equity interest in 3DiJoy post investment. The transaction is expected to close in the second quarter of 2010.
Led by a team of veterans with profound industry expertise and international experience, Shanghai-based 3DiJoy develops advanced motion-interactive software and wireless remote controls, which could turn STBs and PCs into motion-sensing gaming consoles. Running on Linux and Microsoft Windows operating systems, 3DiJoy’s solutions deliver a cost-effective and powerful motion video gaming experience to consumers. 3DiJoy holds over 20 patents in motion gaming technology, and boasts a large portfolio of algorithms, software, and hardware designs. The company has also created more than a dozen 3-D motion video games using its proprietary 3-D motion game engine. 3DiJoy’s current OEM customers include HP, Philips, Lenovo, Haier, and Singapore Telecom.
Jianhua Zhu, China Digital TV’s chairman and CEO commented, “We are very excited to make this strategic investment in 3DiJoy, a leading player in software and hardware solutions for the motion gaming industry in China. 3DiJoy’s management team has deep industry experience and we are confident that this investment will allow us to leverage our leading position in the digital TV industry and create integrated products for our wide customer base. Against the backdrop of TV digitalization and three network convergence, Chinese consumers are eager for high-quality interactive entertainment through their cable set top boxes and other terminal devices, while TV operators are keen to enhance ARPU by providing unique services to subscribers. 3DiJoy’s products are ideally suited to benefit from this growing trend and fit closely with China Digital TV’s strategy to expand our value-added service business.”
Li Hsu, 3DiJoy’s president and CEO said, “China Digital TV’s investment is built on a significant level of synergy and strategic direction between our two companies. Together, we have a shared vision to bring the best motion-sensing interactive gaming experience into the living rooms of China. China Digital TV’s strong network in the digital TV space, coupled with 3DiJoy’s extensive portfolio of motion-sensing gaming technology, will result in a complete solution that will set new standards in advanced motion video gaming on open platforms.”