Motorola had already invested $7.5m in June 2004 and has an option to invest an additional $18m. Net proceeds from Motorola’s investment will be used for R&D, particularly for application software and services; and for working capital.
Terry Lui, DVN’s CEO, said: DVN and Motorola are cooperating very well in a number of areas as reflected by the increased investment. By working together, DVN and Motorola will be able to capitalize on each company’s respective strengths, and hence accelerate the deployment of set top boxes in China.
Motorola and DVN hope that the investment will help them to provide the technology to facilitate the growing convergence of video, internet and telecoms in China, as China’s State Administration for Radio Film and Television announces plans to migrate 30 million cable subscribers to digital within the next several years, with the analog service to be completely cutoff by 2015.
