This means TVB can operate a wholly-owned advertising firm that sells airtime directly to mainland enterprises, thus cutting out the middlemen who represented the network, Media Partners Asia reported. That firm, Gang Shi Multimedia Co. will be based initially in Guangzhou and eventually expand to other cities. 

"This should enable TVB to generate some upside to the HK50 mill. it has contracted to receive in royalty payments from Guangdong cable operators," added MPA, which sees TVB as ripe for a takeover.