China Media Capital buys Star China

News Corp. shifts control to state fund

If you can’t beat ’em, join ’em.

Rupert Murdoch’s News Corp. has sold a controlling stake in its Star China TV business to state-backed media investment fund China Media Capital for an undisclosed sum.

The move is one way of getting around the difficulties of breaking into the Chinese market because of strict controls on the media.

But it now appears to have partially solved that problem.

James Murdoch, chairman and CEO of News Corp. in Europe and Asia, said, “The agreement recognizes the value we have created in Star China and enables us to continue to grow it for the future.”

The Star China TV group includes the Xing Kong and Xing Kong Intl. general entertainment channels, the Channel [V] music channel and the Fortune Star Chinese movie library, which has 757 Chinese-language titles.

Last year, News Corp. restructured its business to focus more on India amid long-term frustrations over the Chinese restrictions, which meant that its Star channels were only distribbed in the southern province of Guangdong.

Jack Gao, News Corp. VP and CEO of Star China, will continue as CEO of the joint venture, which will be based in Beijing with offices in Shanghai, Guangzhou, Chongqing and Hong Kong.

Star is the first acquisition by CMC, which was established in April 2009 with the backing of the National Development and Reform Commission, the government’s state planning organization.

The fund has total assets under management of $740 million and is part of China’s effort to boost its media profile by identifying investment opportunities domestically and abroad with the aim of providing backing through growth capital, corporate restructuring, management buyouts and strategic acquisitions.

“This partnership is an extension of our long-term cooperation with News Corp.,” CMC chairman Li Ruigang said in a statement. “The entry of the Chinese capital into international media market will help facilitate its changes and development.”

More TV

  • BBC Studios Shakes Up Content Team

    BBC Studios Shakes Up Management Team, Hands Mark Linsey New Role

    If you can’t beat ’em, join ’em. Rupert Murdoch’s News Corp. has sold a controlling stake in its Star China TV business to state-backed media investment fund China Media Capital for an undisclosed sum. The move is one way of getting around the difficulties of breaking into the Chinese market because of strict controls on […]

  • LEGION -- "Chapter 10" - Season

    'Legion': Jeph Loeb, Nathaniel Halpern Talk 'X-Men' Universe Connections

    If you can’t beat ’em, join ’em. Rupert Murdoch’s News Corp. has sold a controlling stake in its Star China TV business to state-backed media investment fund China Media Capital for an undisclosed sum. The move is one way of getting around the difficulties of breaking into the Chinese market because of strict controls on […]

  • JD Pardo Mayans MC

    ‘Mayans MC’ Creator Kurt Sutter Reveals How He Cast Series Lead JD Pardo

    If you can’t beat ’em, join ’em. Rupert Murdoch’s News Corp. has sold a controlling stake in its Star China TV business to state-backed media investment fund China Media Capital for an undisclosed sum. The move is one way of getting around the difficulties of breaking into the Chinese market because of strict controls on […]

  • Exclusive - All AroundMandatory Credit: Photo

    Nicole Maines on Why the ScarJo Casting Controversy Matters

    If you can’t beat ’em, join ’em. Rupert Murdoch’s News Corp. has sold a controlling stake in its Star China TV business to state-backed media investment fund China Media Capital for an undisclosed sum. The move is one way of getting around the difficulties of breaking into the Chinese market because of strict controls on […]

  • No Merchandising. Editorial Use Only. No

    Elmarie Wendel, '3rd Rock From the Sun' Actress, Dies at 89

    If you can’t beat ’em, join ’em. Rupert Murdoch’s News Corp. has sold a controlling stake in its Star China TV business to state-backed media investment fund China Media Capital for an undisclosed sum. The move is one way of getting around the difficulties of breaking into the Chinese market because of strict controls on […]

  • Gabrielle Carteris

    SAG-AFTRA Board Approves Deals on Non-Primetime TV, Telemundo

    If you can’t beat ’em, join ’em. Rupert Murdoch’s News Corp. has sold a controlling stake in its Star China TV business to state-backed media investment fund China Media Capital for an undisclosed sum. The move is one way of getting around the difficulties of breaking into the Chinese market because of strict controls on […]

More From Our Brands

Access exclusive content