Xinhua Finance Media Limited, the Chinese financial media company, is acquiring Shanghai-based ad firm JCBN Group for $43 million in cash up front, and possibly up to $69.9 million with potential earnouts. XFML believes the deal will help it target the high-net-worth demographic in China, as JCBN is strong in both online real estate and imported spirits. After the deal, XFML expects to be the top player in both of these markets, with greater than 50 percent market share. It claims the company is the largest advertising agent for the real estate portals at Sohu.com (NSDQ: SOHU) and Focus.cn. Other JCBN clients include international financial institutions and the government of Hong Kong.  JCBN claims earnings of $4.2 million in 2006, on revenue of $17.3 million. This is a big move for the company, as the purchase represents more than 10 percent of XFM’s current market cap. Along with several other China stocks, the company’s shares have come under pressure lately, trading near their lows.Release.

Disclaimer: Our board member Larry Kramer is also on the board of XFML.