Television

Xinhua China acquires HDTV editing technology

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MUMBAI: Xinhua China Ltd. has acquired leading Chinese high definition television text-editing software company Bear Technology. The acquisition expands Xinhua's presence in the rapidly expanding digital media industry in China.

Founded in 2002, Bear Technology offers multiple proprietary solutions for rendering and editing text in high definition (HD). Bear text-editing software is an essential component in the production of HDTV content, which require on-screen text to be rendered in HD for enhanced visual fidelity, according to Xinhua China.

Some applications for Bear's software include personal and commercial HD cameras, televised language translation, closed-captioning, and news and entertainment programming. Currently, Bear Technology customers include leading HDTV and camera manufacturers such as Sony and Panasonic, Xinhua China said.

The company stated that although China's digital television market is relatively small by North American standards, the annual compounded growth rate of digital television subscribers is estimated to grow at 165 per cent per year from 2005 to 2008. With 5.3 million home subscribers in 2005, up from one million in 2004, digital TV in China is enjoying exponential growth.

"HDTV software is a complementary technology to our initiatives to expand our business base through the sale of digital media online in China. We are fortunate to have had this opportunity at a time when HDTV is rapidly overtaking older television technology. We believe HDTV has the potential to further enhance the online experience for enjoyment of all types of online media in China," said Xinhua China CEO Xianping Wang.

"The acquisition of Bear Technology will position Xinhua China as a leading provider of HD content text editing. We see significant revenue opportunities over the long-term as the convergence of the personal computer and High Definition Digital Television gathers momentum," he added.

In addition, upon completion of the purchase of all the issued capital in Bear Technology, the company agrees to grant in aggregate six million stock options to employees, officers and directors of Bear Technology. The options will be priced at the time of issue.

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