Focus Media offloads core assets
Hong Kong- Over the holiday season, Chinese web portal Sina.com acquired Focus Media's core assets for more than US$1 billion, a move that indicated Sina's ambition to expand its advertising business.
Focus Media admitted in its third quarter report that the firm had faced an "extremely challenging advertising environment" towards the end of 2008.
The firm reaches over 150 million urban consumers on a daily basis.
What is left for Focus Media after the acquisition is its internet-advertising division while Sina will run its digital out-of-home advertising networks including LCD display network, poster frame network and in-store network. All of which makes up roughly 52% of Focus Media's revenues and 73% gross profits for the third quarter.
Sina's CEO Charles Chao said he believes the business combination will reinforce its position as a partner of choice in new-media advertising in China.
Tan Zhi (pictured), CEO of Focus Media, said the joining forces with Sina will allow both parties to achieve cross fertilization of capabilities, leveraging Sina's content strength and its video advertising capabilities.
- Sina Corporation
- Focus Media
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