SHANGHAI, China, Dec. 22 /PRNewswire-Asia/ -- Focus Media Holding Limited
(Nasdaq: FMCN), China's leading multi-platform digital media company, today
announced it has entered into a definitive agreement with SINA Corporation
(Nasdaq GS: SINA), a leading online media company and value-added information
service provider for China and for global Chinese communities, that 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.
"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."
Tan Zhi, Chief Executive Officer of Focus Media commented, "Over the years
we have built the largest and most influential out-of-home advertising network
in China, reaching over 150 million main stream urban consumers on a daily
basis. Joining forces with SINA will allow both companies to achieve cross
fertilization of capabilities, leveraging SINA's content strength and our
video advertising capabilities. We are confident that the synergies of the
combined business will allow us to provide better services to our advertising
customers and be more competitive in China's new media space."
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. 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.
Joint Conference Call
Focus Media and SINA will host a joint conference call at 10:00 a.m.
Eastern Time, Monday, December 22, 2008 (11:00 p.m, Beijing time, Monday,
December 22, 2008) to present details of the transaction and address investor
questions. The dial-in number for the call is +1-866-203-3206 (US) or
+1-617-213-8848 (International) and the pass code is 59814271. A live webcast
of the call will be available from 10:00 a.m. - 11:00 a.m. ET on Monday,
December 22, 2008 (11:00 p.m. - 12:00 a.m. Beijing Time on December 22, 2008).
The call can be accessed through SINA's corporate web site at
http://corp.sina.com . The call will be archived for 12 months on SINA's
corporate web site at http://corp.sina.com . A replay of the conference call
will be available through December 29, 2008 at midnight eastern time. The
dial-in number is +1-888-286-8010 (US) or +1-617-801-6888 (International).
The pass code for the replay is 42984285.
ABOUT FOCUS MEDIA HOLDING LIMITED
Focus Media Holding Limited (Nasdaq: FMCN) is China's leading
multi-platform digital media company, operating the largest out-of-home
advertising network in China using audiovisual digital displays, based on the
number of locations and number of flat-panel television displays in our
network, and is also a leading provider of Internet marketing solutions in
China. Through Focus Media's multi-platform digital advertising network, the
company reaches urban consumers at strategic locations and point-of-interests
over a number of media formats, including audiovisual television displays in
buildings and stores, advertising poster frames and other new and innovative
media, such as outdoor light-emitting diode or LED digital billboard and
Internet advertising platforms. As of September 30, 2008, Focus Media's
digital out-of-home advertising network had approximately 120,000 LCD display
and digital frames in its commercial location network, approximately 56,000
LCD displays in its in-store network and approximately 300,000 advertising
in-elevator poster and digital frames, installed in over 90 cities throughout
China, and approximately 250 outdoor LED billboard displays in Shanghai and
Beijing. For more information about Focus Media, please visit our website at
http://ir.focusmedia.cn .
About SINA
SINA Corporation (Nasdaq GS: SINA) is a leading online media company and
value-added information service provider in the People's Republic of China and
for the global Chinese communities. With a branded network of localized web
sites targeting Greater China and overseas Chinese, the Company provides
services through five major business lines including SINA.com (online news and
content), SINA Mobile (MVAS), SINA Community (Web 2.0-based services and
games), SINA.net (search and enterprise services) and SINA E-Commerce (online
shopping). Together these business lines provide an array of services
including region-focused online portals, MVAS, search and directory,
interest-based and community-building channels, free and premium email, blog
services, audio and video streaming, game community services, classified
listings, fee-based services, e-commerce and enterprise e-solutions. The
Company generates the majority of its revenues from online advertising and
MVAS offerings, and, to a lesser extent, from search and other fee-based
services.
SAFE HARBOR: FORWARD-LOOKING STATEMENTS
This announcement contains forward-looking statements. These statements
are made under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar statements. Among
other things, the Business Outlook section and quotations from management in
this press release, as well as Focus Media's strategic and operational plans,
contain forward-looking statements. Focus Media may also make written or oral
forward-looking statements in its periodic reports to the U.S. Securities and
Exchange Commission on forms 20-F and 6-K, in its annual report to
shareholders, in press releases and other written materials and in oral
statements made by its officers, directors or employees to third parties.
Statements that are not historical facts, including statements about Focus
Media's beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties. A number
of important factors could cause actual results to differ materially from
those contained in any forward-looking statement. Potential risks and
uncertainties include, but are not limited to, risks outlined in Focus Media's
filings with the U.S. Securities and Exchange Commission, including its
registration statements on Form F-1, F-3, F-6 and 20-F, in each case as
amended. Focus Media does not undertake any obligation to update any
forward-looking statement, except as required under applicable law.
This press release is provided for informational purposes only and is
neither an offer to purchase nor a solicitation of an offer to sell any
securities. Any securities offered in connection with the transaction will
not be or have not been registered under the Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements.
SOURCE Focus Media Holding Limited
-0- 12/22/2008
/CONTACT: Jing Lu at +86-21-3212-4661 x6607 or ir@focusmedia.cn/
/Web site: http://ir.focusmedia.cn
http://corp.sina.com /
(FMCN)
CO: Focus Media Holding Limited; SINA Corporation
ST: China
IN: CPR ITE ENT
SU: TNM CCA
MM
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0444 12/22/2008 08:20 EST http://www.prnewswire.com
