CMC acquires controlling stake in News Corp businesses

Jack Gao, VP of News Corporation and CEO of Star China, will be head the new company which will be headquartered in Beijing with offices in Shanghai, Guangzhou, Chongqing and Hong Kong.

CMC, China's first private equity fund with a focus on investment in the media industry, was established in April 2009 with the backing of the National Development and Reform Commission with total assets under management of US$738 million (RMB 5 billion).

CMC seeks to identify investment opportunities in media businesses in both China and abroad to provide backing through growth capital, corporate restructuring, management buyouts and strategic acquisitions. The agreement with News Corporation represents its first investment project.

"This partnership is an extension of our long-term cooperation with News Corporation. The entry of Chinese capital into the international media market will help facilitate its changes and development," said Li Ruigang, chairman of China Media Capital.

"Today's agreement represents a first step in that direction. CMC will continue our efforts in developing operational and investment platforms for international media," he added.

James Murdoch, chairman and chief executive for Europe and Asia at News Corporation, added, "The agreement with CMC recognises the value we have created in Star China and enables us to continue to grow it for the future."

Xing Kong and Xing Kong International are general entertainment channels while Channel V Mainland China is a popular music brand among young audiences.

The Fortune Star Chinese movie library has a total of 757 Chinese-language titles, a number of which have worldwide perpetual rights. The content reaches Chinese communities across the globe.