China Mobile parent eyes News HK TV stake
(Reuters)
Updated: 2006-06-08 16:05
HONG KONG - The parent of China Mobile Ltd. , the world's biggest cellular
carrier by users, will buy a major stake in a Chinese-language broadcaster from
News Corp. for more than US$130 million to secure 3G mobile content, Hong Kong
newspapers reported on Thursday.
Shares in Hong Kong-based Phoenix Satellite Television Co. Ltd. , which
targets the mainland China market, were suspended before the start of trading in
Hong Kong on Thursday.
The Standard cited sources with knowledge of the deal as saying
Beijing-controlled China Mobile Communications would become Phoenix Satellite's
second-largest shareholder and Rupert Murdoch's News Corp. would become the
third-largest.
The deal was expected to be finalised this week, and that paper valued it at
HK$1.4 billion (US$180 million) or more.
The South China Morning Post also quoted sources familiar with the deal as
saying China Mobile was looking to pay more than HK$1 billion in cash for a 20
percent stake in Phoenix Satellite from News.
News Corp. currently owns 38 percent of Phoenix Satellite.
The paper said the deal would help China Mobile to offer TV content to mobile
phone users as it launches 3G phone services.
Officials from Phoenix Satellite and China Mobile were not immediately
available for comment.
Beijing has not decided when third-generation telecoms network licences will
be issued, but telecoms operators have said they are preparing for the
technology.
China-focused brodcaster Phoenix Satellite had in March denied a report that
it had discussed share sales with China Mobile. It said it had no plans to seek
new investors and was unware of of News Corp's plans for its current stake.
Shares of Phoenix Satellite have risen about 3.5 percent over the past four
weeks to end at HK$1.46 on Wednesday, while China Mobile shares have fallen 8.7
percent to HK$41.65 in the same period. (US$=HK$7.8)
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