The diversified media conglomerate, Twenty-First Century Fox, Inc. (FOXA), announced the decision to offload its stake in Star China TV.
China Media Capital (CMC) and Fox penned an agreement whereby the latter’s 47% stake in Star China TV would be acquired by Star China’s management and CMC. This decision to sell the business could be a strategic attempt by Fox to focus on its core business operations and streamline its operational structure. This is also evident from its recent stake sale in Phoenix Satellite Television Holdings Ltd.
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Formed in 2010 and primarily owned by CMC, Star China TV operates Xing Kong, Xing Kong International and Channel [V] Mainland China, all three being 24-hour Mandarian channels. It also operates the Fortune Star Chinese movie library.
Fox, a portfolio of film, pay TV, satellite assets, broadcast and cable channels caters to nearly 1.5 billion subscribers in over 100 languages. Last year in November, the company reported its first-quarter fiscal 2014 adjusted earnings of 33 cents per share, which came a penny below the Zacks Consensus Estimate and fell 13.2% from 38 cents earned in the prior-year quarter.
The company, which competes with The Walt Disney Company (DIS), Time Warner Inc. (TWX) and CBS Corporation (CBS), reported an increase of 17.6% in total revenue to $7,061 million on a year-over-year basis, backed by growth across Cable Network Programming, Filmed Entertainment, Direct Broadcast Satellite Television division and Television. Total revenue handily surpassed the Zacks Consensus Estimate of $6,798 million.
This N.Y.-based company currently holds a Zacks Rank #3 (Hold).