Sina acquires most of Focus Media for $1 billion

The deal covers most of Focus Media’s out-of-home assets including its LCD display network, poster frame network and in-store network. The acquired assets combined accounted for 52 per cent of revenues and 73 per cent of gross profits for Focus Media in the first nine months of 2008. Focus Media will keep its Internet advertising division, cinema network and a few remaining traditional billboards.

Sina CEO Charles Chao (pictured) said in a statement that his firm’s acquisition would reinforce Sina’s position in new-media advertising as the Internet firm continues to bolster its advertising reach beyond online and gains 120,000 outdoor digital screens in over 90 cities across China in the deal.

The Internet firm’s 3Q revenue stood at Rmb 719.8 million (US$105.4 million), up 64 per cent annually and 15.4 per cent from its last quarter while advertising revenue amounted to Rmb 520.3 (US$76.2 million) - a 66 per cent rise from the same period last year.

Sina’s latest deal is also expected to lift its sales in the last quarter of 2008 which is expected to decline by as much as seven per cent from three months earlier following a fall in ad revenue due to the end of the Beijing Olympics.

Further update