Focus Media Shares Dip as Analyst Sees Terms of SINA Deal Being Lowered (FMCN, SINA)

Shares of Focus Media (Nasdaq: FMCN) are falling today following a bearish note from an analyst over at Roth Capital. The firm lowered its investment rating on Focus Media from Buy to Hold, saying terms of its deal to sell its digital out-of-home advertising unit to SINA (Nasdaq: SINA) will likely be lowered.

The stock most recently traded at $7.57, down 4.9% from yesterday's closing price.

With the deal currently stalled in a preliminary phase of anti-trust review at China's Ministry of Commerce, SINA's CEO said earlier this week that "the widening gap" between SINA and Focus Media has put pressure on the deal’s terms.

Given these concerns, the Roth analyst believes investors should either remain on the sidelines or sell into strength.

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