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Source: Sina/Focus Media Merger Kaput
An investment bank insider said the merger between Sina (Nasdaq:SINA) and Focus Media (Nasdaq:FMCN) has broken down due to problems with the transaction process rather than government hurdles, Sohu reports June 23. According to the insider, executives and middle management have left Framedia, Focus Media's elevator frame advertising subsidiary and a major focus of the merger agreement, compounding poor financial performances from both companies and dissatisfaction among Sina shareholders. The insider also noted that six months after announcing the merger, neither Sina nor Focus Media stock is significantly higher, causing concerns at Sina as to whether the acquisition will pull down Sina's stock price.
The Ministry of Commerce's (MOFCOM) Anti-Monopoly Bureau refused to disclose details of the Sina-Focus Media merger review process, said another Sohu report.
Focus Media CEO Jason Jiang said in mid-May that the company's merger with Sina is under review from MOFCOM and would be finalized by the end of June.
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