News Corp, the international media conglomerate spearheaded by Rupert Murdoch, is hiving off its STAR China’s TV business to China Media Capital (CMC). In an announcement News Corp mentions of signing an agreement with CMC wherein latter will acquire controlling stake in News Corporation’s Xing Kong, Xing Kong International, Channel [V] Mainland China along with its Fortune Star Chinese movie library.
CMC is China’s first private equity fund with a focus on investment in the media industry. The company was formed in 2009 and is backed by China’s second leading media firm Shanghai Media Group. The agreement with News Corporation represents CMC’s first investment project.
Xing Kong and Xing Kong International are general entertainment channels while Channel [V] Mainland Channel is a popular music brand among the youth audiences. The Fortune Star Chinese movie library has a total of 757 Chinese-language titles, a number of which have worldwide perpetual rights. The content reaches Chinese communities across the globe.
James Murdoch, Chairman and Chief Executive, Europe and Asia, News Corporation, said, “The agreement with CMC recognises the value we have created in Star China and enables us to continue to grow it for the future.”
The move is indicative of News Corp’s gradual movement out of China. During all these years the company has come across several complications in operating in the China’s tightly controlled media environment. In 2009 News Corp shifted its scaled down its operations in Hong Kong and shifted focus on operations in the Indian region. The move was seen to be in similar direction at that time.
Other terms of deal and financials were not disclosed.