China: VisionChina Media Completes Acquisition of Digital Media Group
7 January 2010 10 h 32 min5 Comments
VisionChina Media Inc. has completed the previously announced US$160 million acquisition of Digital Media Group, a leading subway digital signage advertising operator. The transaction creates China’s largest mobile television advertising network.
“The combination of our two media platforms allows us to broaden VisionChina Media’s subway network to match our extensive bus network. This combination of above and below ground media networks provides advertisers with an entirely new offering and has been well received thus far. We now have a greatly enhanced advertising platform that includes 22 of China’s most affluent cities, including all four of China’s Tier I cities, Beijing, Guangzhou, Shenzhen and Shanghai, as well as Hong Kong’s Airport Express line” said Mr. Limin Li, VisionChina Media’s chairman and chief executive officer.
With this acquisition, VisionChina Media expects to “realize significant synergies in several areas including enhanced advertising pricing and greater consolidation of media assets”.
“As we continue to integrate our two companies, we anticipate that gross margins will be impacted in the short term, but we are optimistic about the second half of 2010, as synergies are more fully realized” concluded Mr. Scott Chen, VisionChina Media’s chief financial officer.
VisionChina Media’s out-of-home advertising network now features 110,000 digital displays and reaches over 40 million viewers each day.
Categories : Acquisition, Ad-network, Ad-sales, Bus, China, M&A, Underground
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