RIYADH: Rotana Group, chaired by Prince Alwaleed bin Talal, on Wednesday announced that News Corporation has reached an agreement to exercise 50 percent of its previously announced option in Rotana Group, the Middle East media group. Under the terms of the agreement, News Corporation will acquire newly issued shares in Rotana for $35 million.
The investment will take News Corporation's total stake in Rotana to 14.53 percent.
News Corporation retains the right to exercise the remaining 50 percent of the option until November 2012.
News Corporation acquired an initial 9.09 percent stake in Rotana in May 2010.
Rotana, which is majority owned by Prince Alwaleed, operates one of the largest TV networks and ad sales operations in the region and owns the largest Arabic film library.
It has also 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.
Prince Alwaleed said: "Our partnership with News Corporation is further solidified by this exercise of the option. This reflects our position as one of the world's most global Arab media companies, News Corporation's continued confidence in Rotana management and the growth potential in this fast-growing Middle East region."
He said News Corporation has an unrivaled record in developing businesses of scale around the world.
This investment will help to build Rotana's presence across the region and expand its reach to the Arab population around the world, he said.
Rotana Group is a diversified media company in the Middle East.
It is the world's largest producer of Arabic music and a key distributor and producer of Arabic movies with a library comprising more than 1,600 movies. Rotana also owns a bouquet of leading free-to-air TV channels including LBC Sat, Cinema, Khalijiyah and Musica broadcasting the latest Arabic movies, series and music videos globally.
Furthermore, Rotana has radio stations, a chain of cafes and its own magazine.
It also operates a leading regional advertising sales arm (Rotana Media Services), responsible for advertising sales on its TV channels as well other media businesses in the region.
Rotana's content is also digitally distributed globally.
The Rotana Group employs over 1,100 employees located across the Middle East.
Prince Alwaleed, the principal shareholder of the Rotana Group, is also the beneficial owner of around seven percent of News Corporation's Class B Common Stock as reported on a Schedule 13G, as amended, filed on Feb. 4, 2010.
News Corporation had total assets as of March 31, 2011 of around $60 billion and total annual revenues of approximately $33 billion. News Corporation is a diversified global media company with operations in six industry segments including cable network programming, filmed entertainment, television, direct broadcast satellite television, publishing.
The activities of News Corporation are conducted principally in the US, Continental Europe, the UK, Australia, Asia and Latin America.
© Arab News 2011
