--Merges Asian Subsidiaries into New Company, Plurality-Owned by Canaan
Cellcast South East Asia (note: the company, which has since been merged into a new entity--see below--was a joint-venture between Cellcast, a UK company best known for its SMS-based participation TV products and services, and mTouche Technology Berhad) recently launched an interactive TV series, "CelebMania," on TV3, the largest of Malaysia's terrestrial networks (note: another Cellcast ITV show, "Insomnia," aired on the network earlier this year). According to the 
company, "CelebMania" uses a real-time 3D-rendered "virtual-reality" set featuring high-tech graphics, and blends popular entertainment, including comedy sketches, musical acts and celebrity gossip, with interactive "participation-TV" brain-teasers and quizzes. "Entertainment choices are evolving throughout the region with the rapid consumer take-up of new technology," Mahesh Ramachandra, Cellcast's VP of international and product development, said in a prepared statement. "Mobile phone and Internet penetration in South East Asia continues to soar, and as a consequence, the demand for high-quality multiplatform content and services is very strong. Cellcast South East Asia is well-positioned to cater to this need, by providing leading-edge television-driven entertainment products that tap into the behavior and lifestyle of today's youth." Like "Insomnia," "CelebMania" uses mTouche's SMS and IVR technologies.
In other Cellcast news: the company has consolidated its two Asian subsidiaries into a new company, Cellcast Asia Holdings, in what it describes as a bid to meet the strong demand for interactive digital entertainment in the South Asia and South East Asia regions. It is injecting its 100% holding in Cellcast India and its 50% holding in Cellcast South East Asia into the new venture; and has also agreed to issue $5.25 million of Series A preferred stock to venture capital firm, Canaan Partners. The preferred stock issue values the enlarged share capital of Cellcast Asia at $13.5 million. Cellcast will hold 37.5% of the fully diluted share capital of Cellcast Asia, while Canaan will hold 38.9%; the remaining shares will be held by a trust that will administer share option plans for existing and future employees of Cellcast India. "The investment by Canaan, a specialist investor in the information technology sector, confirms the strength of our commercial proposition," Cellcast CEO, Andrew Wilson, said in a prepared statement. "The opportunity in this region is of such a size that it exceeds Cellcast's ability to realize it alone. The investment by Canaan Partners is a strong endorsement of Cellcast's market-leading proprietary technology and applications, and recognition of the proven skills and sector experience of its established Asian-based management team. The establishment of this dedicated regional operation and its independent funding through Canaan Partners, is the most effective way for Cellcast to realize its growing Asian ambitions whilst retaining resources for reinvestment in other technological and geographical areas."
Cellcast Asia will be headed up by Pankaj Thakar, who was previously CEO of Cellcast India. It will be headquartered in Mumbai, and will target the television markets in India, Sri Lanka, Pakistan, Bangladesh, Malaysia, Singapore, Thailand, Indonesia, Vietnam, Laos, Cambodia and the Philippines. "By combining the resources of Cellcast India with the strong market position of our partner mTouche, we are creating a powerful regional distribution capability with a combined network of relationships with over 20 leading regional broadcasters and over 30 telecoms operators," Thakar said in a prepared statement. "The exciting participation of Canaan Partners will enable us to accelerate growth through investment in new formats and applications and the expansion of our management team to support our regional initiatives."
Originally Published: October 12, 2007 in [itvt] Issue 7.39 Part 3A
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