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By
Reuters API
Published
Jul 19, 2018
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Alibaba to buy minority stake in Focus Media to tap digital marketing

By
Reuters API
Published
Jul 19, 2018

Chinese e-commerce giant Alibaba Group Holding Ltd on Wednesday said it has agreed to acquire a minority stake in China's Focus Media Information Technology Co Ltd to tap into the digital marketing sector.



Alibaba will acquire about 6.62 percent in Focus Media for 9.63 billion yuan (1.10 billion pounds) and possibly another 5.0 percent stake in the next 12 months, it said in a statement.

The e-commerce firm would also invest $511.1 million in an entity controlled by Focus Media's chairman Jason Jiang, by subscribing to newly issued shares, it said.

Focus media, which was founded in 2003, has its main business in China's interactive digital media and online advertising sectors.

Upon completion of the deal, Alibaba will become Focus Media's strategic investor, the Shenzhen-listed firm said in a separate exchange filing.

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