Focus Media To Buy Elevator Advertising Specialist Xianchao

Shares of Focus Media Information Technology leaped after China’s largest outdoor advertising firm revealed plans to acquire elevator ad peer Xinchao Media Group for CNY8.3 billion (US$1.1 billion), marking a strategic expansion into residential advertising, Yicai Global reports. The deal complements Focus Media’s current portfolio, which includes a vast network of digital screens and poster frames in commercial buildings, shopping malls and cinemas. In contrast, Chengdu-based Xinchao specializes in residential communities, particularly through elevator digital screens. After the transaction, Focus Media intends to focus on its main business, add high-quality locations, optimize the density and structure of resources and expand the coverage of the company’s urban life circle media network. As part of the deal, Focus Media also plans to appoint Zhang Jixue, Xinchao’s chairman, as its vice president and chief growth officer.