The diversified media conglomerate,
Twenty-First Century Fox, Inc.
), announced the decision to offload its stake in Star China
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.
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
Time Warner Inc.
), 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
This N.Y.-based company currently holds a Zacks Rank #3
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