(Yicai Global) Aug. 31 -- Chinese cable producer Recon Wenyuan Cable Co.'s [SHE:002692] expansion into the television and culture industry has suffered a setback as the company has decided not to continue with its plan from February to acquire a stake in A&T Media Inc., a famous independent film production and project management company in Hollywood.

Since A&T Media has many subsidiaries with 272 films in their libraries, the deal progressed slower than expected and would be difficult to complete and the two companies have decided to end it, Recon Wenyuan said yesterday.

Neither of the firms needs to pay damages to its counter party since the decision to terminate was reached by consensus and will not have adverse impacts on either companies' operation and earnings, Recon Wenyuan said. Recon Wenyuan said it will continue to work with A&T Media in other areas of the film and television industry.

Recon Wenyuan said that terminating the acquisition will not affect its strategic plans or have a substantial impact on its long-term development.

The Chinese government has issued restrictions on irrational outbound investment in real estate, hotels, cinemas, entertainment and sports clubs and urges firms to carefully consider such investment.