Murdoch retreats, China Mobile advances into TV

Rupert retreats
Image from Sydney Morning Herald

Mure Dickie of the Financial Times reports:

Rupert Murdoch’s News Corp is to sell a 20 per cent stake in Phoenix Satellite Television, its Hong Kong-based Chinese TV joint venture, to China Mobile, the state-controlled wireless operator, in an apparent shift in group strategy towards China.

The sale, worth $185m based on the most recent close of Phoenix’s shares, cuts News Corp’s stake to less than 18 per cent, making China Mobile its second biggest shareholder.

The deal marks a dramatic reduction in News Corp’s involvement in what has been its most successful foray into the fast-growing Chinese media market – and appears to highlight Mr Murdoch’s frustration at Beijing’s tight media controls…