Hong Kong broadcaster TVB has reportedly lowered the asking price for a 50% stake in its pay-TV arm, Galaxy Satellite Broadcasting, as it struggles to find investors in the proposed platform.

TVB originally planned to sell the stake for $200m, but is scaling back the project in an attempt to attract investors, according to Dow Jones wire reports.

Under the terms of its licence, awarded in July 2000, TVB is required to sell a 50% stake in Galaxy to prevent it from dominating the pay-TV market as well as free-to-air broadcasting. However, it failed to close a deal by the June 6 deadline and asked the Hong Kong government for an extension to February 2003.

Although TVB won't be penalised for missing the June deadline, the government has yet to decide if it will grant the broadcaster the additional eight months. The request was criticised by incumbent pay-TV operator, I-Cable Communications, which claimed TVB has already been given preferential treatment.

TVB said it is in talks with several potential investors - including satellite operator AsiaSat - and that the 50% stake is likely to be split between several companies.