Rumor: Focus Media to Sell Subsidiary to GoodMedia
Economic Observer, 12/06/08
A rumor is circulating that digital media firm Focus Media (Nasdaq: FMCN) will sell its fitness center media subsidiary Sports Media, which it bought in March of this year, to GoodMedia.
A source at GoodMedia familiar with the situation says that the companies have already signed an MOI regarding GoodMedia's intent to purchase Sports Media. The transaction will be carried out for a combination of cash and stock, but details as to amount and proportion were not available.
A source who had participated in the acquisition said that Sports Meida could buy itself back from Focus Media, then sell itself to GoodMedia. Currently the companies have signed an MOI, and will confirm details later this month.
GoodMedia covers 1,724 fitness centers in 37 cities throughout the country, with 70% coverage (640 outlets) in Beijing, Shanghai, Guangzhou, and Shenzhen, and 92% coverage (1,084 outlets) in 33 second-tier cities.
Keywords: Sports Media GoodMedia FMCN Focus Media television out-of-home display
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