Alibaba buys minority interest in Focus Media for US$1.43 billion

Alibaba buys minority interest in Focus Media for US$1.43 billion

Alibaba has announced that it has struck a deal with Focus Media Information Technology to acquire a minority stake in the Chinese digital marketing company.

Alibaba will pay US$1.43 billion for a 6.62 percent share of the Shanghai-based firm. Focus operates digital advertising screens across 300 Chinese cities, reaching 200 million middle-class consumers. Alibaba also announced its intention to buy a further 5 percent interest within the next year.

With an additional investment in an entity controlled by Focus and Chairman Jason Nanchun Jiang and the acquisition of a 1.37 percent interest in Focus by Alibaba-controlled New Retail Strategic Opportunities, Alibaba’s total investment amounts to US$2.23 billion.

The investment will allow Alibaba to offer the brands who sell via its e-commerce channels digital channels through which they can connect with China’s middle class consumers and their rising spending power.

IN CONVERSATION WITH...

FORMULA FRIDAY

STREET TALK

60 SECOND PITCH

WELLNESS

FASHION

TRAVEL

PROFESSIONAL BEAUTY

TOP 100 BRANDS

JOBS & PEOPLE

EVENTS