Focus Media to acquire Allyes for $300M |
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Thu, 01 Mar 2007 00:32
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NEW YORK (AP) - Shanghai-based media company Focus Media Holding Ltd. said Wednesday it will acquire Allyes Information Technology Company Ltd., an Internet advertising service company also based in China, for up to $300 million in cash and stock.Focus Media said the deal will allow it to gain entrance to China's online ad market.Under terms of the transaction, which is expected to close in March, Focus Media will pay $70 million in cash and $155 million in stock. Allyes also will receive an additional payment of up to $75 million in stock if it meets certain earnings targets during the 12 months from April to March 2008.Allyes Chief Executive David Zhu has signed an employment agreement with Focus Media and will remain in his position.Focus Media provides advertising platforms to clients in China using audiovisual flat-panel displays in locations such as stores, office and residential buildings, movie theatres and airports.Focus Media stock rose $1.86, or 2.4 percent, to close at $80.10 on the Nasdaq Stock Market. In after-hours trading, shares climbed 85 cents to $80.95. The stock has traded between $50 and $88.50 over the past 52 weeks.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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