Middle East diversified media company Rotana Group announced that News Corporation has signed an agreement to acquire newly-issued shares in Rotana for $35 million.

The investment will take News Corporation’s total stake in Rotana to 14.53 per cent.

News Corporation retains the right to exercise the remaining 50 per cent of the option until November 2012.

News Corporation acquired an initial 9.09 per cent stake in Rotana in May 2010.

Rotana, which is majority owned by Prince Alwaleed Bin Talal, 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.

“News Corporation has an unrivalled 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,” stated Prince Alwaleed Bin Talal.

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.

Prince Alwaleed Bin Talal, the principal shareholder of the Rotana Group, is also the beneficial owner of approximately 7 per cent of News Corporation’s Class B Common Stock.-TradeArabia News Service