Focus Media Sells Allyes to Silver Lake

Shanghai :Focus Media Holding Limited , China’s leading digital media group today announced that they have entered into a definitive share purchase agreement with Silver Lake, a global leader in private investments in technology and technology-enabled industries, pursuant to which Focus Media will sell to Silver Lake a 62% indirect equity ownership of its Internet subsidiary, Allyes Online Media Holdings Ltd and its consolidated subsidiaries and affiliates (together “Allyes”).

Under the terms of the agreement, Silver Lake will pay US$124 million to Focus Media, in exchange for the equity ownership of Allyes held by Focus Media. Simultaneously with the signing of the agreement, certain remaining shareholders of Allyes also agree to sell their equity ownership in Allyes to Silver Lake, so that following the series of transactions, Silver Lake will own a controlling stake in Allyes.

“We are delighted to welcome Silver Lake as our majority shareholder and strategic partner,” said Mr. David Zhu, CEO of Allyes. “Allyes looks forward to leveraging Silver Lake’s deep technology background and exceptional insights in the global interactive market as we continue to grow and innovate our business strategies.”

“Allyes is entering into its next phase of growth, we believe technology investment firm like Silver Lake will be able to take Allyes to a new level of growth through strengthening its technological competitiveness in China. Post this transaction, Focus Media will be more focused on our core businesses, striving to continuously enhance and expand our life-circle media platforms through our LCD display network, poster frame network, in-store network and movie theater network,” said Mr. Jason Jiang, Chairman & CEO of Focus Media.

The transaction is expected to close soon, subject to customary closing conditions.

MacQuarie Capital Advisors is acting as the financial advisor to Focus Media and Simpson Thacher & Bartlett LLP is advising Focus Media on this transaction.

Latham & Watkins, FangDa Law Partners are advising Allyes on this transaction.

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