News Corp. Sells Off Stakes in Chinese TV Stations

Rupert Murdoch's News Corp. announced on Monday that it is selling off its controlling stakes in three Chinese television stations and a movie library to a government-backed fund after years of frustrated dealings with Beijing.

Under the deal, China Media Capital will take a controlling stake in News Corp.'s Xing Kong, Xing Kong International, and Channel Mainland China stations, along with the Fortune Star Chinese library, according a News Corp. statement. No financial details were released.

Established in 2009, China Media Capital is backed by Shanghai Media Group, China's No. 2 media company after CCTV, as well as China Development Bank and China Broadband Capital.

The move is being seen as a clear sign that News Corp. is losing interest in the country's potentially lucrative market as various government restrictions and limitations make the chances of a foreign entity tapping that market less likely.

China currently claims the world's largest media market, with over 400 million regular television viewers. The Chinese government, though, uses the media as its primary tool to control the country's massive population and will not give any portion of the market to any force outside of its control.

The now 79-year-old Murdoch has openly expressed his frustration with the Chinese government on certain occasions. During a 2005 conference in New York, Murdoch accused the Chinese government of being "paranoid" and said they no longer wanted foreign investors in their media market.

News Corp., the world's second largest media conglomerate after The Walt Disney Company, owns a large collection of media assets coving books, magazines, movies, newspapers, and television such as HarperCollins, the Wall Street Journal, 20th Century Fox, and Fox Broadcasting Company. Global revenue last year totaled nearly US$31 billion.

This article was originally written for 2point6billion.com, an Asia business news source published by Asia Briefing. Asia Briefing also publishes China business guides and India business news website, India-Briefing.com.