U.S. analysts said the acquisition of Focus Media,

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U.S. analysts said the acquisition of Focus Media, is expected to win Allyes

Lead: U.S. Eastern Time March 2 (Beijing March 3), Focus Media this week announced 2006 fourth quarter earnings and announced plans to acquire China's largest advertising agency network Allyes network, thus attracting the attention of investors and analysts. U.S. investment adviser Fool analyst 里克穆纳里兹 (Rick Munarriz) believe that Focus Media acquired Allyes necessary for both sides, is expected to be a win-win deal.
Focus Media announced Wednesday that it has enthusiasts ad network to reach a final agreement yeah, $ 70,000,000 will be worth 155 million U.S. dollars in cash and common stock acquired all the shares of the latter. If the April 1, 2007 to March 31, 2008 in 12 months, good Yeda to a specific earnings targets, Focus Media Jiangzai value of $ 75,000,000 paid ordinary shares. Through the deal, Focus Media will enter the rapidly growing Chinese Internet advertising market.
Allyes to the United States scheduled for later this year listing, but the company eventually abandoned the plan. On Tuesday, China's stock market fell sharply and the stock market triggered a global decline in Chinese stocks listed in the United States has been a greater negative impact, which is probably good Lord accept the request for the acquisition of Focus Media's Allyes was established in 1998, is the largest Internet advertising agency and Internet advertising technology provider. Good Lord's AdForward software products include the network ads, monitoring, creativity, results orientation and evaluation of all aspects, has been 80% of China's independent commercial websites and advertising agencies used, including Sina and Taobao.
Allyes in China, launched the first Pay-for (pay-for-performance) of the online advertising model. Allyes advertising network SmartTrade has integrated more than 5,000 popular Web site resources, is the largest Pay-network advertising network ads appear daily more than 3 million times. However, the Chinese online advertising market in the future may not belong to a good yeah. If the market follows the trajectory of the United States, the field of Internet search in China occupying the absolute leading edge of Baidu are more likely to be successful. For the Lord is good, Focus Media is a suitable purchaser, can help expand the range of customers.
the other hand, Focus Media can not ignore the high-margin online advertising market. Focus Media is China's largest outdoor LCD screen advertising network operator, and its LCD advertising screens across China's major office buildings, elevators and other public places. As more multinational companies and Chinese companies started to pay attention the growing Chinese middle class, Focus Media is expected to benefit from this trend. Focus Media's business model works well in China, but the company's expansion to the online advertising market is not unexpected.
Focus Media Advertising from the LCD screen, poster frames and outdoor LED network of a huge profit, but to continue to expand, the company will require substantial funding to build infrastructure. In contrast, expansion in the online advertising market will have to be much easier, Focus Media will have to wait to further improve China's Internet penetration rate.