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Media conglomerate aims to gain stronger foothold in local marketwith Bona Film. Bona Film Group Ltd, one of China's largest film distributors, will sell nearly a20 percent stake in itself to News Corp, the world's second-largestmedia conglomerate by revenue last year, to expand its globalbusiness and gain further advantage in the burgeoning domestic filmmarket. News Corp will acquire a 19.9 percent stake in Bona directly fromthe company's founder, Chairman and CEO Yu Dong, according to astatement on Bona's website. "We are thrilled to receive this strategic investment from NewsCorp News Corp's extensive global reach, investment anddistribution will help accelerate our strategy to expand our globalfootprint," said Yu in the statement. Bona, listed on Nasdaq in 2010, is developing its business to coverthe full spectrum of the film industry. It distributes filmsthroughout China, South Korea, Southeast Asia, the US and Europe.It owns and operates 13 movie theaters at home. The company's net revenue reached $43.7 million in the firstquarter, up 126.8 percent year-on-year, and its net income rose35.3 percent to $3.3 million. During the first quarter, it took in more than 450 million yuan($71.33 million) in box office receipts through the distribution offive films, including the 3D production The Flying Swords of DragonGate. "The deal will help Bona gain greater advantages in expanding itsdistribution overseas because News Corp enjoys a wide medianetwork," said Zhang Yanan, a senior analyst of media andentertainment at Zero2IPO Research Center. "Bona has always intended to distribute its products at home andabroad at the same time." She also said that the cooperation offers Bona an opportunity tolearn about the mature investment and financing mechanisms of themovie sector that are shared among overseas financial institutionsand entertainment entities. "Surely, Bona will become more competitive in the domestic andglobal markets with the completion of the deal," Zhang said. "China's film market is growing at a rapid pace, positioning thecountry to be the second-largest film market following the UnitedStates, and Bona's market leadership, compelling value propositionand tremendous growth potential make this an attractive opportunityfor News Corporation," said Jack Gao, senior vice-president of NewsCorp and CEO of News Corp China Investments. News Corp, the owner of 20th Century Fox film studio and The WallStreet Journal, wants to tap the second-largest economy's hugemarket. Last year, CEO Rupert Murdoch called for China to open its filmmarket and approve the release of more foreign films, according toThe Wall Street Journal. In February, China agreed to increase the country's annual quota offilm imports from 20 to 34, as well as increase US studios' shareof earnings from between 13 and 17.5 percent to 25 percent. We are high quality suppliers, our products such as Fixed Asset Tags , China RFID Label Tag for oversee buyer. To know more, please visits RFID UHF Reader.
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