HONG KONG—China Mobile Ltd. will acquire a 19.9-percent stake in a Hong Kong-based television joint venture in a move seen as a setback to Rupert Murdoch’s efforts to tap the tightly controlled media market.
The state-controlled operator will pay an undisclosed sum to buy the stake in Phoenix Satellite Television from News Corp.’s STAR Group Ltd., which will retain 17.6 percent of the broadcaster. The stake has a market value of $185 million.
Analysts said the move highlights the difficulties foreign companies face in gaining a foothold in China’s media market.
China Mobile earns preferential access to Phoenix’s content with the deal, and the transaction includes the formation of a strategic alliance between China Mobile, News Corp. and STAR to explore business opportunities in wireless media.
“This is a very important step for us in view of the global convergence of telecommunication, media and the Internet,” China Mobile Chief Executive Officer Wang Jianzhou said in a prepared statement. “With News Corp. and STAR’s popular media content assets, we will be able to offer more exciting services to our customers.”
