Alibaba Taps Digital Display Market With Focus Media Stake
E-commerce giant Alibaba Group Holding Ltd. agreed to invest 15 billion yuan ($2.2 billion) in digital advertising service provider Focus Media Information Technology Co. Ltd., Focus Media said Wednesday.
The deal gives Alibaba and two of its units a total holding of 7.99% in Focus Media, China’s largest digital marketing company, with the option to increase the stake.
Focus Media said the investment will forge a strategic partnership between the two companies to jointly explore digital marketing in the new-retail boom. Alibaba created the new-retail concept featuring a combination of online and offline services.
Founded in 2003, Focus Media operates a liquid crystal display (LCD) network for advertising in offices and apartment buildings in 300 cities. The company said it plans to expand the network to 500 cities, covering 500 million urban consumers.
Under the agreement, Alibaba will acquire a 5.28% stake in Focus Media for 7.67 billion yuan. Meanwhile, the company’s subsidiaries Alibaba Investment Ltd. and New Retail Strategic Opportunity Fund will purchase a combined 2.71% stake for $594 million.
Separately, the e-commerce company will also invest $511 million for a 10% stake in Media Management Holding Ltd., which is controlled by Focus Media Chairman Jason Jiang, by subscribing to the company’s new share issuance. The investment will give Alibaba an additional 2.33% interest in Focus Media, according to Focus Media’s statement.
Alibaba may increase its holdings in Focus Media by as much as 5% in the next 12 months, Focus Media said.
Focus Media listed on Nasdaq in 2005 but went private in 2013 before it launched a listing on the mainland market in 2015.
Contact reporter Han Wei (firstname.lastname@example.org)
Dec 09 18:04
Dec 09 17:44
Dec 09 17:53
Dec 09 16:25
Dec 09 14:13
Dec 09 14:39
Dec 09 14:57
Dec 09 13:20
- 1Two China Firms Miss $526 Million Bond Payments as Woes Grow
- 2Exclusive: Founder Warns of ‘Extremely Tight’ Liquidity After Bond Default
- 3Photo Essay: Chinese Farming in Mozambique
- 4Citigroup Edges Closer to Exiting Its Chinese Securities Venture
- 5Chipmaker Secures Patent Deals as China Seeks to Break Foreign Tech Dependence
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas