DMG Entertainment Founder, Dan Mintz, has agreed to buy a majority stake in Taiwan's Eastern Broadcasting Corp (EBC.) He made the remarks on Sunday that he was in the process of the purchase.
The deal is subject to regulatory approval by Taiwan’s Investment Commission and National Communications Commission (NCC.)
Taiwan's Investment Commission said Peter Xiao, a co-founder of DMG Entertainment, has links with the Chinese People's Liberation Army. DMG is a Chinese-based entertainment company that also produces and distributes Hollywood movies.
The commission said this connection with China means the deal faces a "strict review" by the Taiwan government. NCC official Andy Hsieh spoke at the legislature on Monday about the deal.
“Mintz said there would be no problem, but we didn’t say that," said Hsieh.
"When this case comes in, we will process it according to regulations. The application will go to the Investment Commission first, and the commission will request the NCC opinion. This is foreign investment, which requires our approval. We will investigate as we’re authorized to.”
DPP legislator Lee Kun-Tse said that investments that may infringe on national security must be carefully evaluated.