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SMG to Transform into Holding Company, 6/02/09

Li Ruigang, VP of the Shanghai Media Group (SMG) recently stated SMG will transform into a holding corporation. The company will separate subsidiaries into independent entities, with animation and children's programming and home shopping to be among the first of the businesses to be spun off. The group hopes the spun-off businesses will be able to attract a number of private equity investors and then list at a later date.

Li also expressed that SMG's online television department might be in preliminary stages of private equity investment. This service will reach nearly 2 mln homeholds this year.

Editor's Note: Li added that while SMG's Q1 2009 advertising revenue was down 10% YoY, in April it was up 2% YoY. He also said that within 1 to 3 years SMG will consider listing some of the businesses, reports Guangzhou Daily.

Keywords: corporate restructuring Li Ruigang advertising animation home shopping programming Shanghai Media Group television IPO

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