Rupert Murdoch’s News Corp is to sell control of its three Chinese television channels to a local state-controlled private equity fund in a recognition that its ambitious plan to build and control a broadcasting business in China has failed. The two companies did not announce financial details of the deal but executives said News Corp would hold on to close to 50 per cent of the assets. The sale comes a year after News Corp reorganised its pan-Asia Star TV business into separate Star India and Star Greater China units, and also ceded management of Star’s English-language content to Fox International Channels. China Media Capital, a fund backed by Shanghai Media Group and China Development Bank, both state-owned, has agreed to acquire a controlling stake in Xing Kong, Xing Kong International, Channel [V] Mainland China and its Fortune Start Chinese film library, News Corp and CMC said.
– Rupert Murdoch's News Corp. stepped up its retreat from China yesterday with the sale of a controlling interest in three TV channels to a government-backed fund. The company insists that it plans to maintain a strong presence in China but analysts believe the move signals that News Corp., frustrated by interference from Beijing, has finally given up on its hopes of building a broadcasting business in the country, the Independent reports. News Corp. Asia and Europe CEO James Murdoch, Rupert's son, "doesn’t believe that they can build a business in China," an industry executive tells the Financial Times. "This is a clear sign that they aren’t interested in China anymore, but they can’t say that.”