Sina Acquires Focus Media's Digital Out-of-Home Business
Sina Press Release, 12/22/08
Chinese online portal Sina (Nasdaq: SINA) today announced that it has reached an agreement with Focus Media Holding (Nasdaq: FMCN) to acquire all of the assets of Focus Media's digital out-of-home advertising networks, including its LCD display network, poster frame network and in-store network. Focus Media will retain its Internet advertising division, the movie theater advertising network portion of its commercial location network and certain traditional billboards.
The transaction has been approved by both boards of directors, is not subject to shareholder approval, and is expected to be completed in the first half of 2009. Sina will issue 47 mln newly issued ordinary shares to Focus Media Holding as consideration for the acquired assets.
The related business of the acquired assets combined comprised approximately 52% of revenues and approximately 73% of gross profits for Focus Media for the nine months ended September 30, 2008.
Keywords: M&A FMCN Focus Media Internet Sina online advertising out-of-home display
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