China Media Capital (CMC) will buy out 21st Century Fox’s 47 percent stake in Star TV China, a joint venture between the two parties, according to a joint statement from the buyer and seller.
The venture was formed in 2010 and is majority owned by CMC. It operates three 24-hour Mandarin channels: Xing Kong, Xing Kong International and Channel [V] Mainland China as well as the Fortune Star Chinese movie library.
The management team at Star TV is also involved in the purchase, but financial details were not disclosed.
A spokeswoman from CMC declined to comment on financial details. However, when CMC purchased its controlling stake in Star TV China in 2010, the deal was estimated at $160 million, Private Equity International reported at the time.
“This latest transaction marks a new era for Star China and we remain committed to building the company into one of the most respected entertainment companies in China,” said Ruigang Li, chairman of CMC, in the statement.
21st Century Fox’s divestment “underscores our broader agenda of streamlining our affiliate ownership structures” , added James Murdoch, chairman and chief executive officer, international, at 21st Century Fox.
China Media Capital is a Beijing-based private equity fund focused on the media and entertainment sector. CMC’s founding partners include Shanghai Media Group, China’s second largest media group, and China Development Bank.
The firm focuses on growth capital, corporate restructuring and MBO/privatisation financing opportunities.
CMC closed its debut fund on 5 billion RMB (€605 million; $826 million) in 2010, according to PEI’s Research & Analytics Division.