News Corp sells controlling stake in China TV channels

Aug. 9, 2010 - PRLog -- According to Rupert Murdoch, News Corp will sell controling stake of its three Chinese TV channels: Xing Kong, Xing Kong International and Mainland China channels, along with its Fortune Star Chinese movie library to China Media Capital, a private equity fund backed by Shanghai Media Group (SMG), China’s No.2 media company.

Since News Corp entered China’s tightly controlled media market, it had to deal with numerous limitations and restrictions from Beijing.

“News Corp, after two decades in China, has done the inevitable in the last few years,” Vivek Couto, a media analyst at Media Partners Asia said. “They see the best option to grow in the market is to make sure the business is in control of local hands.”

Couto also predicted that China Media Capital could eventually sell off the company, or even take it public.

“This partnership is an extension of our long-term cooperation with News Corp,” China Media Corp Chairman Li Ruigang, who is also president of SMG, said in a statement. “The entry of Chinese capital into the international media market will help facilitate its changes and development. Today’s agreement represents a first step into that direction.”

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