Focus Media to Acquire Net Ad Firm
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BUSINESSCHINA 14 FRIDAY MARCH 2, 2007 CHINA DAILY INBRIEF BEIJING Focus Media Investment may slow China’s overall fi xed-asset investment growth may slow to 22 percent in 2007 from to acquire last year’s 24 percent as government curbs on land and lending continue, the Ministry of Land and Resources said, Net ad fi rm citing a researcher. Spending on property and factories by local govern- ments, which accounted for $300m cash-and-stock deal more than 88 percent of the total in 2006, may deceler- with Allyes likely this month ate further this year as the central government maintains By Wang Xing eCapital Corporation, said the measures, Wang Yuanjing, Focus Media’s aggressive a researcher at the National acquisitions stem from the Development and Reform China’s largest outdoor media company’s increasing concern Commission, was quoted as group, Focus Media, yesterday over its over-reliance on a single saying in a statement on the said it will acquire Internet ad- revenue source. land ministry’s website. vertising service company Al- Focus Media’s latest report, lyes Information Technology for released on Monday, said com- Mexico joins WTO claim $300 million in cash and stock mercial locations contributed Mexico has joined the in an effort to forge an empire 63 percent of the company’s United States and Japan in a covering outdoor, indoor, mobile revenue in 2006 while revenue complaint to the World Trade and Internet advertising. from in-store network, in-eleva- Organization (WTO) over Under the terms of the deal, tor and cellphone advertising the Chinese government’s which is expected to come accounted for 12.7 percent, 19.1 alleged payment of subsidies through this month, Focus and 4.6 percent respectively. to manufacturers. The Media will pay $70 million in “Focus Media has to go be- three countries claim State cash and $155 million in stock yond its reliance on ‘outdoor An Egyptian businessman examines Chinese-made shoes at the East China Fair, which opened in Shanghai yesterday. Xiang Ying subsidies make Chinese steel, to Allyes. electronic billboards’,” said paper and consumer products Allyes, which was estab- Wang. “Focus’s other revenue artifi cially cheap. lished in 1998, will also receive generators would not be able The case is the third time an additional payment of up to to sustain the huge company if Numbers up at annual trade fair Washington has taken China to $75 million in stock if it meets one day the growth of China’s the global trade body since its certain earnings targets from outdoor advertising market EXHIBITION Commodities Fair, or the “Can- More visitors and deals are an offi cial from the Shanghai WTO accession. They will enter this April to March 2008. slows down.” ton Fair”. expected this year than at Foreign Economic Relations and into a consultation period of up Allyes’s CEO David Zhu has Although many applauded By Zheng Lifei The combined gross domestic last year’s session, organizers Trade Commission, which is to 60 days if Beijing agrees. signed an employment agree- the high-profi le deal between product of those nine co- said. involved in organizing the fair. ment with Focus Media and Focus Media and Allyes, the organizers accounts for 45 The 16th fair saw 3,540 fi rms This year, 144 overseas Sinochem to buy oilfi eld will remain in his position. acquisition smashed Allyes’s SHANGHAI: Merchant num- percent of the nation’s total, and 23,660 overseas merchants companies from 15 countries Sinochem Corp, China’s biggest “This acquisition is stra- earlier efforts to seek an inde- bers were up on the fi rst day while their combined export when it was held last year, up and regions have booked 188 chemical trader, will submit a tegically important to Focus pendent initial public offering of the country’s second-largest volume accounts for nearly half of 15.08 percent over the previous booths at the fair, according to bid to buy Devon Energy Corp’s Media. It extends our lifestyle in NASDAQ. trade show, the East China Fair, China’s total. This has made the session, according to fi gures the organizers. oil and gas fi elds in Egypt, media platform to one of the Experts believe the sluggish which opened yesterday. fair an increasingly important provided by the organizers. About 120 overseas firms Shanghai Securities News said, fastest-growing media seg- performance of Double Click in The annual fair, which will platform for the country’s A total of $3.3 billion in trade came to the fair last year. citing people it didn’t name. ments in China – the Internet NASDAQ, with a similar busi- run until next Tuesday at the exporters and importers. deals were clinched during last This change is in line with An offer will be made in the – reaching the high-end urban ness model as Allyes, and the city’s New International Expo “It (the fair) is especially year’s fair, an increase of 11.68 the country’s new policy of en- coming days, the newspaper consumers,” said Focus’s CEO robust performance of Focus Center, attracted 3,522 fi rms important for the textile, percent over 2005. couraging more imports to ease said, without giving further Jason Jiang, who was reported to Media triggered the deal. from home and abroad. apparel and handicraft export A growing number of foreign the surging trade surplus. details. have owned shares in Allyes. Apart from the two parties, Its exhibition space covers industry in the region and the companies have shown interest “More and more foreign Sinochem has about 100 Focus Media, which runs another benefi ciary of the deal 100,350 square meters and is country as a whole,” said Wang in the fair this year, keen to tap fi rms are coming to the show million barrels of oil and gas fl at-screen TVs displaying ads is venture capital company divided into four sub-sections Chenghu, an exhibitor from a the huge potential market in the with novel and competitive reserves and aims to double in stores, offi ces and apartment IDG VC, which is the major — apparel, textiles, decor and textile export company in world’s most populous country. products,” Wang said. that volume in the next three buildings, has been expanding investor for both Focus Media consumer goods. nearby Jiangsu Province. Foreign exhibitors previ- And some foreign fi rms are years through acquisitions in since last year through several and Allyes. The 17th East China Fair, “We cannot afford to miss ously attached little impor- attending the fair en masse. the Middle East, Africa and acquisitions to run ads in el- It was reported earlier that which is co-organized by nine the opportunity to meet our tance to the fair as it was Twelve South Korean fabric South America, it said. The evators and cinemas and on IDG earned $65 million from governments across East China, prospective buyers at this fair more export-oriented, the and accessory makers have a company is evaluating almost outdoor electronic billboards Allyes’s deal with Focus Media, has become the second-largest as a considerable amount of our organizers said. zone in the textiles sub-section 80 possible targets, it said. and cellphones. 40 times of what it had invested of its kind in the country after export contracts are done here,” “But the situation has showcasing their products and Wang Ran, CEO of China in Allyes. the Chinese Import and Export Wang said. changed,” said Chen Zhangyuan, technologies. Suitable places to invest China has identifi ed nine countries as suitable for investment by the nation’s oil companies. Chinese oil companies should Honda plans new brand through Guangzhou venture target Kuwait, Qatar, Oman, Morocco, Libya, Niger, Norway, Ecuador and Bolivia for invest- MANUFACTURING The 50/50 venture, as all major Sino-foreign car home-grown brands will ac- December that it plans to set up & Jun’an Securities Co said: ments, according to guidance Guangzhou Honda Automobile ventures only assemble models count for more than 60 percent a new research center to boost “It should be a small car, as published on the website of By Gong Zhengzheng Co, will announce a plan for the under overseas badges. of the market by 2010. its development capability with Chinese customers still favor the National Development and new brand later this month or “Guangzhou Honda seems South Korean carmaker increasing localization of auto foreign brands in the medium- Reform Commission. in April, he said, declining to to be working the way policy- Hyundai Motor Co’s joint parts. More than 80 percent of and high-end segments.” China National Petroleum Japan’s No 3 carmaker Honda provide details. makers intended. Government venture with Beijing Automo- the parts it uses are currently Honda also has a joint venture Corp and China Petrochemical Motor Co plans to create a new He stressed that Guangzhou policy is meant to develop inde- tive Industry Corp said it also made in China. in the central city of Wuhan with Corp are among companies brand in China through a local Honda is expected to be the fi rst pendent automotive companies, plans to launch a non-Hyundai Formed in 1998, Guangzhou Dongfeng Motor Corp. scouring the globe for oil and joint venture to further tap the major Sino-foreign car venture not companies that depend on branded car in 2008. Honda is one of the most profi t- The venture’s line-up in- gas resources to meet surging world’s second-biggest vehicle to create a home-grown brand.