Monday, October 18, 2010

Chao: Sina merger motives Focus

December 22 evening news, Sina CEO Charles Chao, president and chief analyst at the just held a conference call that the merger of Focus Sina outdoor digital media business behind the formation of synergistic effect is the driving force of this merger, he said, the newly formed platform including a mainstream consumer market in China.

In a conference call with analysts ask: What makes the merger Focus Sina part of the business. Chao said the two companies behind the business synergy is the driving force of this merger, and will set up a leading new media advertising platform, "This platform includes a mainstream consumer market in China.

Chao said the two businesses will create synergy between, there are a large number of users can share with Focus Media. "More importantly, we are not only able to cover high-end consumers, but also can be achieved in different time periods covered. This is very powerful, we will create a new integrated customer solutions."

"Our market share will be greater, will provide advertisers with better prices, better results. Will give both companies greater benefits." Chao said.

The industry also expressed this view recognized eCapital CEO Ran Wang said the increase in media assets help to improve the ability of our advertising marketing services, "the two sides together overlapping assets, will make the richer, linkage, and efficient cross-media Integrated advertising marketing possible. "

SINA Corporation and Focus Media Group announced late on December 22 the two sides reached an agreement, Sina will combine outdoor Focus's digital advertising business. Under the agreement, Sina will be issuing 47 million common shares for the purchase of a subsidiary of Focus Media Focus buildings television, advertising, and shopping mall advertising framework of business-related assets. Focus Media will retain its Internet advertising business, cinema advertising, and traditional outdoor billboard business.

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