northvalley

There's Still Hope for Focus Media After Sina Acquisition

You apparently have not been to China and are making these assumptions out of your apartment/house some 8000 miles away from China. First of all, FMCN does not get 1 billion dollars cash from Sina, it get 47 million lousy shares of Sina. There is a big difference here. Second, you know how much Chinese citizen got bombarded with all sorts of ads? You cannot even imagine. The ads on are in subways, on the train window, on your hand rail, on top of men's urinals. The point is the effectiveness of these ads are diminishing! Third, you want to know the real reason of this transaction? Is it because Jason Jiang wants to get out. He does not want to run this business anymore. He is 35 and has made enough money. He does not want to deal with the collapse of the ad market and reinvent his company. The notion that FMCN will reinvent itself into an online advertising powerhouse is laughable! Sina is much bigger online vs. FMCN. There are a few other online players like Sina. FMCN does not have the success gene in online, it started off from off-line, mind you!