Shanghai-based media company Focus Media will acquire Allyes, an online advertising service company also based in China, for up to $300 million in cash and stock. Focus Media will pay $70 million in cash and $155 million in stock. Allyes also will receive an additional payment of up to $75 million in stock if it meets certain earnings targets during the 12 months from April to March 2008.
Focus Media provides advertising platforms to clients in China using audiovisual flat-panel displays in locations such as stores, office and residential buildings, movie theatres and airports. The companies said Allyes’ technology is used by about 80 percent of independent commercial websites and ad agencies in China, including Sina and Taobao.
Allyes was founded in 2000, and funded by IDG, IDG-Accel and Oak Investment Partners. More details in release.