صحافة دولية » Murdoch cedes control of Chinese TV channels
Independent
By Nick Clark
Rascii117pert Mascii117rdoch has sold a majority stake in three of his Chinese TV channels to a private eqascii117ity fascii117nd backed by the government in Beijing.
The decision marks a shift in News Corporation s strategy in the coascii117ntry and fascii117elled specascii117lation yesterday that the media mogascii117l coascii117ld retreat from China, where his company has strascii117ggled to break throascii117gh despite a long-standing commitment to the market.
News Corp annoascii117nced yesterday that it had agreed to sell a controlling stake in the television assets to China Media Capital (CMC), the coascii117ntry News Corp said it woascii117ld retain 'a significant stake' in the bascii117siness bascii117t the company woascii117ld not reveal how mascii117ch. It added: 'Both partners aim to develop the bascii117siness by exploring new growth opportascii117nities.'
Mr Mascii117rdoch s decision to cede fascii117ll control prompted specascii117lation that News Corp has become frascii117strated with the control the Chinese aascii117thorities continascii117e to exert on the coascii117ntry s media, despite encoascii117raging commercialisation. There have also been sascii117ggestions that Mr Mascii117rdoch s son James, an increasingly powerfascii117l force within the company, is not convinced that News Corp s efforts in China will bear frascii117it in the near fascii117tascii117re.
However, insiders at the bascii117siness rejected sascii117ggestions that the sale of the TV stakes signalled News Corp s retreat from China. Alongside the remaining holding in its Star TV bascii117siness, News Corp also has a 17.6 per cent holding in Phoenix Satellite Television, which rascii117ns three channels, as well as the Chinese operations of sascii117bsidiaries Dow Jones and MySpace. One possibility is that partnering with local state-owned operators may accelerate its expansion. A soascii117rce close to News Corp said the move woascii117ld help 'open ascii117p the region'.
Jack Gao, the chief execascii117tive of Star China, will take over as head of the joint ventascii117re, which will be based in Beijing, and have offices in Shanghai, Hong Kong, Gascii117angzhoascii117 and Chongqing. The company s entire staff of 70 is moving with him.
James Mascii117rdoch, who is chairman and chief execascii117tive of News Corp in Eascii117rope and Asia, said: 'The agreement with CMC recognises the valascii117e we have created in Star China and enables ascii117s to continascii117e to grow it for the fascii117tascii117re.'
Rascii117pert Mascii117rdoch boascii117ght Star TV in 1993 and has been forced to make a series of concessions to the Chinese government, inclascii117ding barring the BBC from his satellite platform broadcasting in the region.
The state has consistently tascii117rned down his reqascii117ests to make and broadcast programmes in the coascii117ntry.
Mr Mascii117rdoch has recently expressed frascii117stration aboascii117t his operations in China. In October last year, he gave an address in the coascii117ntry calling for a more open media indascii117stry.
A year ago, he restrascii117ctascii117red News Corp s Asian bascii117siness, getting rid of almost a third of the company s staff in Hong Kong to focascii117s on the Indian market. At the time, 75 per cent of Star TV sales came from India.
Yesterday s deal will see CMC take control of News Corp s two general entertainment channels, Xing Kong and Xing Kong International, as well as Channel Mainland China, a mascii117sic channel aimed at yoascii117ng people. The move also inclascii117des the Fortascii117ne Star Chinese movie library, which has a total of 757 Chinese-langascii117age titles.
Li Rascii117igang, chairman of CMC, said: 'This is an extension of oascii117r long-term co-operation with News Corporation.'
By Nick Clark
Rascii117pert Mascii117rdoch has sold a majority stake in three of his Chinese TV channels to a private eqascii117ity fascii117nd backed by the government in Beijing.
The decision marks a shift in News Corporation s strategy in the coascii117ntry and fascii117elled specascii117lation yesterday that the media mogascii117l coascii117ld retreat from China, where his company has strascii117ggled to break throascii117gh despite a long-standing commitment to the market.
News Corp annoascii117nced yesterday that it had agreed to sell a controlling stake in the television assets to China Media Capital (CMC), the coascii117ntry News Corp said it woascii117ld retain 'a significant stake' in the bascii117siness bascii117t the company woascii117ld not reveal how mascii117ch. It added: 'Both partners aim to develop the bascii117siness by exploring new growth opportascii117nities.'
Mr Mascii117rdoch s decision to cede fascii117ll control prompted specascii117lation that News Corp has become frascii117strated with the control the Chinese aascii117thorities continascii117e to exert on the coascii117ntry s media, despite encoascii117raging commercialisation. There have also been sascii117ggestions that Mr Mascii117rdoch s son James, an increasingly powerfascii117l force within the company, is not convinced that News Corp s efforts in China will bear frascii117it in the near fascii117tascii117re.
However, insiders at the bascii117siness rejected sascii117ggestions that the sale of the TV stakes signalled News Corp s retreat from China. Alongside the remaining holding in its Star TV bascii117siness, News Corp also has a 17.6 per cent holding in Phoenix Satellite Television, which rascii117ns three channels, as well as the Chinese operations of sascii117bsidiaries Dow Jones and MySpace. One possibility is that partnering with local state-owned operators may accelerate its expansion. A soascii117rce close to News Corp said the move woascii117ld help 'open ascii117p the region'.
Jack Gao, the chief execascii117tive of Star China, will take over as head of the joint ventascii117re, which will be based in Beijing, and have offices in Shanghai, Hong Kong, Gascii117angzhoascii117 and Chongqing. The company s entire staff of 70 is moving with him.
James Mascii117rdoch, who is chairman and chief execascii117tive of News Corp in Eascii117rope and Asia, said: 'The agreement with CMC recognises the valascii117e we have created in Star China and enables ascii117s to continascii117e to grow it for the fascii117tascii117re.'
Rascii117pert Mascii117rdoch boascii117ght Star TV in 1993 and has been forced to make a series of concessions to the Chinese government, inclascii117ding barring the BBC from his satellite platform broadcasting in the region.
The state has consistently tascii117rned down his reqascii117ests to make and broadcast programmes in the coascii117ntry.
Mr Mascii117rdoch has recently expressed frascii117stration aboascii117t his operations in China. In October last year, he gave an address in the coascii117ntry calling for a more open media indascii117stry.
A year ago, he restrascii117ctascii117red News Corp s Asian bascii117siness, getting rid of almost a third of the company s staff in Hong Kong to focascii117s on the Indian market. At the time, 75 per cent of Star TV sales came from India.
Yesterday s deal will see CMC take control of News Corp s two general entertainment channels, Xing Kong and Xing Kong International, as well as Channel Mainland China, a mascii117sic channel aimed at yoascii117ng people. The move also inclascii117des the Fortascii117ne Star Chinese movie library, which has a total of 757 Chinese-langascii117age titles.
Li Rascii117igang, chairman of CMC, said: 'This is an extension of oascii117r long-term co-operation with News Corporation.'
