The move, which comes a month after James Murdoch took control of News Corp's European and Asian operations, adds to the company's existing Sky pay-TV assets in the UK and Italy.
News Corp has a history in the German TV market, having once owned a 22% stake in German media mogul Leo Kirch's Kirch Group, of which Premiere used to be part.
News Corp lost £1bn on that 1990 investment, after Kirch collapsed under the weight of its debts in 2002, and has since had no presence in German television.
Rupert Murdoch, chief executive of News Corp, said the German market was now attractive.
He said: "We see enormous potential for growth in Germany and believe the time is right to invest in its foremost pay-TV business, Premiere."
However, a News Corp source told Reuters the company has no plans to increase its new stake in Premiere.
The move may have been intended to head off interest in Premiere from France's Vivendi, which has been reported to be interested.
News Corp paid €17.50 per share, compared to the company's share price of around €13 before news of the deal.
The stake was sold to News Corp by Unitymedia, a German cable operator.