News Corp. Makes Mideast Investment

NEW YORK: News Corporation has reached a deal to pick up a 9.09 percent stake in Prince Alwaleed Bin Talal’s Middle Eastern media group Rotana for $70 million.

As part of the transaction, News Corp. has an option to increase its stake to 18.18 per cent in the 18 months following completion. Rotana, owned by Alwaleed, who himself owns a stake of News Corp., operates a portfolio of satellite channels and controls a significant library of Arabic-language films. It also owns the leading record label in the Middle East.

Announcing the investment, James Murdoch, chairman and chief executive for Europe and Asia, noted: “A stake in Rotana expands our presence in a region with a young and growing population, where GDP growth is set to outstrip that of more developed economies in the years ahead. Rotana is a leading player in the Middle East and we look forward to working together.”

Alwaleed added: “We are delighted to have this partnership with News Corporation. As one of the world’s most global media companies, it has an unrivalled record in developing businesses at scale around the world. This investment will strengthen our existing relationship, building Rotana’s presence across the region and expanding its reach to the Arab Diaspora around the world.”