Alibaba announces acquisition of Focus Media to tap digital marketing

Alibaba Group Holding Ltd has announced that it agrees to acquire a minority stake in China’s Focus Media Information Technology Co Ltd to tap into the digital marketing sector.

Alibaba will acquire about 6.62% in Focus Media for 9.63 billion yuan and possibly another 5.0% stake in the next 12 months, according to the company statement.

Upon completion of the deal, Alibaba will become Focus Media’s strategic investor.

The e-commerce firm will also invest US$511.1 million in an entity controlled by Focus Media’s chairman Jason Jiang, by subscribing to newly issued shares.

Focus media, which was founded in 2003, has its main business in China’s interactive digital media and online advertising sectors.

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