Focus Media Holding Limited
Focus Media Holding Limited is a multi-platform digital media company. The Company is engaged in selling out-of home television advertising time slots on its network of flat-panel television advertising displays located in high traffic areas, such as commercial locations and in-store network. It is also engaged in providing advertising services on in-elevator poster frames, mobile handsets, the Internet, on screens in movie theatre, and on traditional outdoor billboards.
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Focus Media and Sina abandon merger plans
Sina Corp., China's biggest Web portal, has abandoned its US$1.7bn purchase of Focus Media Holding Ltd.(NASDAQ:FMCN) assets after being unable to gain antitrust approval from the Chinese Ministry of Commerce. Focus' share price remained stable on the news yesterday, ending 0.5 percent up.
The agreement made between the two companies in December will expire this month, after which they will instead try to establish a "strategic cooperation", according to Focus Media Chairman Jason Jiang in a statement yesterday.
Sina's Chief Executive Officer Charles Chao said that "the delayed consummation of the transaction has negatively impacted the business operations of both sides," Sina's Chao said in the statement.
Chao had previously said four weeks ago at an earnings conference call that Sina was "unlikely" to complete the planned acquisition by the deadline.
The news follows interim results released by Focus on the 18th showing a net loss for the quarter ended June 30. Net revenue from continued operations fell 23 percent to US$82.1m, while its Internet advertising service revenue was down 12 percent to US$66.7m.
On the 24th September, Susquehanna Financial Group upgraded Focus from Neutral to Positive with a US$13 price target.
