News Corporation takes 9.1 per cent stake in Saudi’s Rotana Group for $70 million
24 Feb 2010
News Corporation, the media conglomerate controlled by Rupert Murdoch has acquired a 9.1-per cent stake in Middle-East-based entertainment company Rotana Group for $70 million.
The New York-based News Corporation said in a statement today that it will acquire newly-issued shares in Rotana for $70 million with an option to increase its stake to 18.18 per cent within 18 months.
Riyadh-based Rotana, owned by Saudi prince Alwaleed Bin Talal, operates one of the largest TV networks and advertisement sales operations in the region and owns the largest Arabic film library.
The huge pan-Arab media conglomerate includes a film production company, Rotana Magazine, Rotana TV, and seven music channels under the umbrella Rotana Radio, a record label Rotana Records among others.
It has more than 100 Arab artists signed to Rotana Records and has built the leading record label in the Middle East, managing many of the most popular artists in the region and controlling the biggest Arabic music catalogue.
"This is a qualitative leap not just for Rotana but for the whole Arab world," said Rotana's chairman, Alwaleed at a press conference.
James Murdoch, son of Rupert Murdoch and chairman and CEO, Europe and Asia, News Corporation, said, "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."
