Registered USD 9 million in capital, the new firm will be 67% controled by Dentsu and 33% owned by Focus Media's subsidiary Hua Kuang Advertising Co., Ltd. The Japanese company will appoint the chairman of the new firm and inject the current online advertising business of its arms in Beijing and Shanghai into the new company. The venture aims to gain operating revenue of JPY 5 billion in the first year.
Dentsu looks to strengthen its competitiveness against occidental advertisers in the Chinese market via sharing the customer resources of Focus Media.
As of December 2007, China had around 210 million Internet users. It is forecasted to surpass the US and become the country with most Internet users around the world in 2008.
Focus Media lately also announced a strategic partnership with emerging in-hospital TV network owner Yanhuang Health Media.
Under the partnership, Focus Media, China's largest out-of- home multi-platform life-style media company, will invest USD 5 million in Yanhuang Health Media, a Chinese operator of in- hospital advertising network using audiovisual television displays.
Besides, it will transfer the ownership of its medical care network covering hospitals and drugstores in 31 Chinese cities to Yanhuang Health Media, in which, it will take a 20% stake after the deal.
Through series acquisitions after its listing, Focus Media has been expanding its presence to more profitable fields.
Yanhuang Health Media, set up by Beijing Yanhuang Times Advertising Corporation in 2005, generates its revenue from selling advertising airtime on its network of TV displays in hospitals.
As the largest in-hospital TV network owner in China, it gained a USD 5 million investment from Asia-focused venture capital firm SIAF Partner in September 2006 and a USD 35 million investment from Orchid Asia, CRCI, Investment AB and HSBC in October 2007.
Yanhuang Health Media Limited is a leading digital display advertising operator covering healthcare locations in China, including hospitals, drug chain stores and other healthcare locations. Currently, it has an installed based of over 10,000 LCDs in 36 cities throughout China.
Yanhuang Health Media has obtained a total of USD 35 million investment from venture capital firms Orchid Asia, CRCI, investment AB and HSBC.
From eNet.com.cn, Page 1, Tuesday, January 22, 2008 info@SinoCast.com
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