SINA (SINA) To Acquire Focus Media's (FMCN) Digital Out-of-Home Business

December 22, 2008 8:27 AM EST
Focus Media Holding Limited (Nasdaq: FMCN) entered into a definitive agreement with SINA Corporation (Nasdaq: SINA) to acquire substantially all of the assets of Focus Media's digital out-of-home advertising networks, including 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.

Under the agreement, SINA will acquire the assets under Focus Media's LCD display network, poster frame network and in-store network. The related business of the acquired assets combined accounted for 52% of revenues and 73% of gross profits for Focus Media for the first nine months ended September 30, 2008. SINA will issue 47 million newly issued ordinary shares to Focus Media Holding as consideration for the acquired assets. Focus Media Holding will then distribute SINA shares to its shareholders shortly after the closing.

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