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TMT· Media & Marketing

Alibaba to acquire minority stake in Focus Media to tap digital marketing

CKN
minutes 2018/07/20 02:47:06
3,532
Alibaba, Focus Media, digital marketing

Jul 20, 2018 (China Knowledge) - Chinese e-commerce giant Alibaba Group Holding Ltd<BABA> on Wednesday said it has agreed to buy a minority stake in China's Focus Media Information Technology Co Ltd <002027> to tap into the digital marketing sector.

Alibaba will acquire about 6.62% in Focus Media for RMB 9.63 billion (USD 1.43 billion) and possibly another 5.0% stake in the next 12 months, it said in a statement.

The e-commerce firm would also invest USD 511.1 million in an entity controlled by Focus Media's chairman Jason Jiang, by subscribing to newly issued shares, it said.

Focus Media, which was founded in 2003, has its main business in China's interactive digital media and online advertising sectors. In an official announcement, Focus Media stated that after the introduction of Alibaba as a strategic investor, the company will be able to leverage Alibaba's powerful new retail infrastructure and big data analysis capabilities to further enhance the company's core competitiveness and create a new urban life circle intelligent media network.

Upon completion of the deal, Alibaba will become Focus Media's strategic investor, the Shenzhen-listed firm said in a separate exchange filing.

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