Hong Kong Firm Buys Control of AOL Station

Tom.com Ltd., Hong Kong billionaire Li Ka-shing’s media company, bought control of AOL Time Warner Inc.’s TV station in China, betting that it can win distribution and ads for the unprofitable channel.

Tom.com agreed to pay $7 million in stock for 64% of China Entertainment Television Broadcast, Chief Executive Sing Wang said. The Hong Kong-based company will invest $30 million over 30 months in the channel, which remains 35.9% owned by AOL.

China Entertainment Television, which broadcasts from the province of Guangdong, can be seen by 19 million of China’s 370 million households. Tom.com said its nationwide ad sales network and client list would help the channel win more of the $3.1 billion in TV ad spending forecast in China in 2005 by Zenith Optimedia.