SHANGHAI, China — Focus Media Holding Limited, a Chinese multi-platform digital media company, has announced it has entered into a definitive agreement with SINA Corporation, an online media company and value-added information service provider for China and for global Chinese communities. SINA will 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.
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“The transaction is intended to combine the forces of two of the most powerful new media advertising platforms in China to provide more effective and integrated marketing solutions to our customers,” said Charles Chao, president and CEO of SINA Corporation. “We believe that this business combination will significantly extend our media reach and influence, reinforcing our position as a partner of choice in new-media advertising in China.” The transaction has been approved by both boards of directors and is not subject to shareholder approval. The transaction is subject to customary closing conditions and certain regulatory approvals and is expected to be completed in the first half of 2009.
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