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It is worth noting that Fosun International pulled in 1,725,996 shares and 8,602,089 shares on December 19 and December 22, respectively.
With completion of the deal, Fosun International will turn out to be the controlling shareholder of Focus Media and the third largest shareholder of Sina.
Fosun International said in a statement that as a strategic investor Fosun International believes it is time to load Focus Media shares now.
Focus Media was 10% held by Jiang Nanchun, chairman and president of the company, 8.05% by FMR LLC, 6.79% by Morgan Stanley, 6.35% by Oppenheimer Funds, and 5.69% by Price Associates Incorporation.
After the purchase between Sina and Focus Media, Oppenheimer Funds will remain the biggest shareholder of Sina, with shares decreasing from 9.11% to 7.81%. Former second-largest shareholder Price Associates will hold 6.2% stakes of Sina after the deal.
Fosun International will get 6.27 million Sina shares by holding 1.33% stakes in Focus Media and become the third largest shareholder of Sina with a holding of 6.08%.
The deal pushes Sina into the business of outdoor and in-store advertising on liquid-crystal display monitors, diversifying an Internet giant with news, blogs and online entertainment.
In terms of to the deal, Sina is expected to acquire most of the core holdings of Focus Media, including its out-of-home advertising networks, its LCD display network, and its in-store network, which together would amount to more than 100,000 advertising monitors around the country.
Focus Media, which is expected to have about USD 800 million in revenue this year, said it would retain its fast-growing online advertising assets, its movie advertising network, its commercial location networks and its traditional billboard business.
While Sina.com competes fiercely against other strong Chinese Internet companies, like Baidu, Sohu and Tencent, analysts have considered the advertising company an innovative company because it has grown fast, essentially by acquiring competitors and placing monitors in stores, residential buildings and even on busy commercial streets in some of China's biggest cities, including Shanghai.
Source: www.cnstock.com (December 25, 2008)
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