Rumor: Sina, Focus Media Merger May Fail
Sohu IT, 6/23/09
A reliable source says the merger between Sina (Nasdaq: SINA) and Focus Media (Nasdaq: FMCN) is "stillborn" – owing to problems arising during the transaction between the two companies, rather than government regulatory concerns. The source says that following the companies' announcement of the merger, the exodus of senior Framedia management and the resulting shake-up had an adverse effect on the overall sustainability of Focus's business performance. In addition, Focus was affected by the global economic crisis starting in the second half of last year, leading to a protracted decline in performance, while Sina's financial performance has also declined, leading to shareholder dissatisfaction – a key factor in the possible failure of the merger.
Keywords: M&A online advertising FMCN Focus Media Framedia Internet Sina out-of-home display frame advertising
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