Chinese government waits out Sina-Focus Media deal
Posted by Leah McBride Mensching on August 24, 2009 at 8:54 AM
Sina Corp., the top Internet portal in China, is expected to drop its planned purchase of Focus Media, a US$1.4 billion deal and the largest in the media sector in the country's history, if the government does not approve the takeover by Sept. 30, Reuters reported.
The commerce ministry has pushed its review of the deal back several times since the purchase of Focus Media's core assets was announced in December 2008, and continues to ask for more documents, "frustrating both Nasdaq-listed companies," according to Reuters.
The commerce ministry has pushed its review of the deal back several times since the purchase of Focus Media's core assets was announced in December 2008, and continues to ask for more documents, "frustrating both Nasdaq-listed companies," according to Reuters.
Analysts believe the deal is having trouble due to the government's concern over anti-trust issues, as well as "pressure from China's two top state-run media firms," Reuters reported.
According to BloggingStocks, Focus Media has been downgraded from buy to neutral by UBS, likely do to the pending Sina deal.
According to BloggingStocks, Focus Media has been downgraded from buy to neutral by UBS, likely do to the pending Sina deal.
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