Hong Kong / Beijing, June 8, 2006 –
China Mobile Limited (“China Mobile”) and
Phoenix Satellite Television Holdings Limited (“Phoenix”) announced today a
strategic alliance to jointly develop, market and distribute wireless
content, products,
services and new media applications.
The announcement follows the purchase of a 19.9% interest in Phoenix from
STAR
Group Limited (“STAR”) by China Mobile (Hong Kong) Group Limited, China
Mobile’s
holding company. After the transaction, STAR will continue to hold 17.6% of
Phoenix.
Under the strategic alliance agreement, China Mobile and Phoenix will
jointly develop
products and services relating to the wireless delivery of media content. In
exchange
for direct access to China Mobile’s network and customer base on favourable
terms,
China Mobile will have preferential access to Phoenix’s news and selected
programs.
The deal will complement China Mobile's 3G strategies by widening its
service
offerings and providing enhanced media content to its mobile subscribers,
and will
broaden Phoenix’s new media content’s access to China mobile’s customer
base.
Wang Jianzhou, Chairman and Chief Executive Officer of China Mobile, said,
“Phoenix offers a unique set of content to the Chinese community globally.
By
leveraging Phoenix’s media content via our mobile platform, China Mobile
will be well
positioned to provide wireless multimedia services to our customers.”
Liu Changle, Chairman and Chief Executive Officer of Phoenix, said, “I am
very
pleased that we have established this strategic partnership with a
world-class mobile
telecommunications operator, such as China Mobile. The establishment of this
new
strategic alliance will provide an excellent opportunity for the further
development of
Phoenix's new media business, and should have a very positive impact on
Phoenix's
long-term commercial prospects, enabling Phoenix to distribute its content
through
China Mobile's wireless platform and reach a broader market.”
Michelle Guthrie, Chief Executive Officer of STAR, said, “As one of the
founders of
Phoenix, we take great pride in its accomplishments over the past ten years.
We
believe that bringing in China Mobile as a shareholder and strategic partner
will
create incredible growth opportunities for Phoenix in the future. We look
forward to
our continued involvement in Phoenix as the company extends its content to
the
largest wireless customer base in the world.
Goldman Sachs is acting as financial advisor to China Mobile. Merrill Lynch
is acting
as financial advisor to STAR.
About China Mobile
China Mobile is a leading mobile telecommunications service provider in
China, providing
mobile voice and data telecommunications and related services to all 31
provinces,
municipalities and autonomous regions in the mainland as well as being one
of the major mobile telecommunications service providers in Hong Kong. As of
30 April 2006, China Mobile had an aggregate mobile telecommunications
subscriber base of nearly 265 million, the largest worldwide.
About Phoenix
Phoenix is one of the leading broadcasters in Hong Kong and mainland China
aiming to
provide quality content to Chinese communities all around the world. Today,
Phoenix
Chinese, Phoenix Movies, Phoenix InfoNews, Phoenix Chinese News and
Entertainment and Phoenix North America Chinese channels together broadcast
to audiences in the Asia Pacific, as well as in Europe, North America and
North Africa, covering more than 100 countries and regions.
About STAR
STAR is a leading media and entertainment company in Asia. STAR broadcasts
over 50
television services in nine languages to more than 300 million viewers
across 53 Asian
countries. STAR channels cover all genres including general entertainment,
sports, movies, and news & current affairs. STAR controls over 20,000 hours
of Indian and Chinese programming and also owns the world's largest
contemporary Chinese film library. In partnership with leading companies in
Asia, STAR businesses extend to filmed entertainment, television production,
cable systems, direct-to-home services, terrestrial TV broadcasting,
wireless and digital services. STAR is a wholly owned subsidiary of News
Corporation.
For press enquiries, please contact:
China Mobile
Mr. Guan Yimin or Ms. Rainie Lei
Telephone: (852) 3121 8888
Fax: (852) 3121 8809
Phoenix
Ms. Wang Duo Duo or Ms. Lizzie Cheung
Telephone: (852) 9473 1654 / (852) 9210 9538
Fax: (852) 2621 7400
STAR
Ms Jannie Poon / Mr Allen Chen
Telephone: (852) 2621 8619 / (86 10) 8518 8500
Email: janniep@startv.com /
yhchen@cn.startv.com