China Mobile acquires stake in Phoenix TV

Rupert Murdoch’s News Corp. owned Star Group has sold a minor stake in the Hong Kong-listed Phoenix Satellite Television Holdings to China Mobile. The financial details of this deal were not revealed to the media.

With this deal, STAR Group would hold around 17.6% of Phoenix. China Mobile owns a 19.9% stake. Media analysts claim that the worth of this deal could be around HK$1.4 billion.

China Mobile and Phoenix TV would now form a strategic alliance to jointly develop and market wireless content, products, services and new media applications. And China TV would also be forming an alliance with News Corp. and STAR Group to cooperate in wireless services.

Wang Jianzhou, chairman and chief executive of China Mobile spoke about this deal: “This is a very important step for us in view of the global convergence of telecommunications, media and Internet. With News Corp. and STAR’s popular and quality media content assets, we will be able to offer more exciting services to our customers.”

Rupert Murdoch, chairman and chief executive of News Corp added: “The partnership will give (News Corp.) immediate access to a vast consumer base throughout China.”

Market analysts are however doubtful on how this deal would help China Mobile in their core businesses.

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