Focus Media Holding Limited cemented its position as China's largest operator of flat-screen LCD advertising networks when it acquired Target Media just over a year ago. The company also acquired poster-frame advertising network Framedia last year, and has taken some time to integrate these acquisitions.

Buzz late last week had Focus Media planning to acquire Shanghai-based restaurant advertising company Dinning Media, which has more than 20,000 poster advertising, frames in 2,000 Beijing restaurants. This additional ad inventory would presumably mesh well with Focus' existing Framedia assets

A deal with Allyes would give Focus Media a great online advertising sales platform -- a key asset as the company looks ahead to increasing competition in China's advertising sector. Focus has been considering Internet acquisitions for some time: earlier rumors had the company picking up the 20% stake in Sina Corp. that Shanda Interactive Entertainment Ltd. controlled, which wouldn't have made much sense.

Focus Media currently commands the out-of-home flat-screen advertising sector, but this is just one piece of a fast-growing industry -- to be truly successful, Focus needs to keep itself on the leading edge of the advertising industry, in general. An Allyes acquisition would probably cost Focus more than $200 million, but would be a worthwhile strategic move.

Source:未知