China announces it will buy 100 million shares in U.S. television station CBS News
China has ordered 100 million share purchases of CBS News Inc., the media conglomerate said on Wednesday, in a sign of Beijing’s desire to increase the reach of its own news networks.
China’s state broadcaster said in a statement that the order was in line with the country’s media reforms since the early 2000s and would help strengthen the CBS News brand in the region.CBS said it would use the money to strengthen the network’s news, business and sports news, as well as digital and social media platforms.
The broadcaster also said it will use the funds to develop a business model for the CBS Sports Network and launch its own streaming platform, which will allow users to watch shows from the network on their mobile devices.CBS has struggled to attract subscribers and its stock price has fallen in recent months amid reports of poor advertising performance.
The U.K.-based company said in May it would buy a stake in CBS News in a deal worth about $500 million.