News Corp. Sells Fox Mobile Group

Company retreats from mobile content sector two years after investing $388M to acquire Jamba

News Corp. has sold its wireless entertainment division, Fox Mobile Group, to a real estate holding company.

Terms of the sale to Jesta Group, which closed Wednesday, were not disclosed.

Fox Mobile sells games, ring tones and videos for wireless phones under brand names that include Jamba, Jamster, Bitbop and Mobizzo.

The unit took its current form in 2008, when News Corp. paid $388 million to VeriSign to acquire Jamba, and re-organized its mobile content assets into a veritcally integrated entertainment division that produced original content, and handled distribution and licensing.

News Corp., however, has been cooling toward the still-nascent mobile-content business, and will now assume a more traditional posture of licensing its traditional-media properties for the platform.