Chinese regulators have approved the sale by News Corp of a 19.9-percent stake in Hong Kong-based Phoenix Satellite Television to the Chinese mainland's largest mobile phone operator, state media said Tuesday. The State Development and Reform Commission (SDRC) has approved the sale by Star Group, part of Rupert Murdoch's News Corp media empire, to China Mobile, the official Xinhua news agency reported.
The purchase will make China Mobile the second-largest shareholder of the broadcaster after Phoenix chairman Liu Changle, who holds 37.5 percent of the company, Xinhua said.
After the deal, Star Group will hold a 17.6-percent stake in Phoenix. It was unclear what News Corp would do with its remaining shares in the broadcaster.
The deal was announced several months ago when the companies said it would allow the Chinese mobile operator to offer TV content over its future 3G services.
In exchange for direct access to China Mobile's network and customer base on favourable terms, China Mobile would have preferential access to Phoenix's news and selected programs, a statement in June said.
The statement said the deal would complement China Mobile's 3G strategies by widening its service offerings and providing enhanced media content to its mobile subscribers.
