Focus Media Restructures Advertising Business

Focus Media Press Release, 12/09/08

Chinese digital media group Focus Media (Nasdaq: FMCN) has announced a restructuring of its advertising business. The company announced the termination of its remaining wireless advertising business which will cause it to incur one-time non-cash impairment charges of approximately USD 20 mln. It also announced that it has finished restructuring its CGEN in-store advertising network which it purchased in February this year. Due to CGEN failing to meet earnings targets, it has canceled earn-out provisions of the CGEN purchase agreement.

Editor's Note: In March 2008, Focus Media's wireless advertising subsidiary, Focus Wireless, was embroiled in a scandal involving the sending of SMS spam. For more background on this topic please see "Focus Wireless in Spam SMS Scandal", MD 3/17/08, and "China Mobile Cuts of Focus Wireless SMS Service", MD 3/19/08 issue.

Keywords: digital media advertising Focus Wireless mobile advertising CGEN FMCN Focus Media television wireless out-of-home display

Feedback

Sending

Disclaimer

The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

Marbridge Daily