Allyes is expected to postpone its Nasdaq listing in light of the purchase. It is believed that Focus beat out competition from Google to secure the purchase, which Deutsche Bank VP of China technology equity research William Bao-Bean termed a “smart move.”
“Focus wants to turn itself into a media conglomerate, and that includes expansion into mobile and online,” said Bao-Bean. “Allyes is a business that helps them broaden their reach and the companies are quite close to each other already.”
Bao-Bean added that he expects a certain degree of separation between Focus and Allyes, not least because Allyes advises clients on media buying, while Focus’ business is built around offering outdoor media options.
The acquisition comes as Focus reported its 2006 results, with revenues reaching US$213 million for the full year, compared with $68.2 million in 2005. Bao-Bean attributed the surge to an improvement in the company’s capacity utilisation.
