China Mobile Ltd. will acquire a 19.9 percent stake in Phoenix Satellite Television Holdings Ltd., News Corp. announced June 8. The deal will reduce News Corp.’s stake in Phoenix to 17.6 percent, making it the third largest shareholder behind China Mobile.

China Mobile and Phoenix also agreed to a strategic alliance to jointly develop, market and distribute wireless content, products, services and new media applications. In exchange for direct access to China Mobile’s network and customer base, 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.

“Phoenix offers a unique set of content to the Chinese community globally,” Wang Jianzhou, chairman and CEO of China Mobile, said in a statement. “By leveraging Phoenix’s media content via our mobile platform, China Mobile will be well positioned to provide wireless multimedia services to our customers.”