BEIJING, Nov. 27 /Xinhua-PRNewswire/ -- Xinhua Finance Media (NASDAQ:XFML), China's leading diversified financial and entertainment media company, today announced that it has acquired JCBN Company Limited, an advertising company with operations in Shanghai, Beijing and Hong Kong (''JCBN Group'').
''This acquisition enhances our multimedia advertising platform for advertisers who are interested in reaching China's high net worth demographic, and strengthens XFMedia's advertising capability especially in Shanghai,'' said XFMedia CEO Fredy Bush. ''The combined group is expected to make XFMedia a market leader in online real estate advertising and spirits Below-The-Line (BTL) marketing services in Mainland China.''
JCBN Group is the largest advertising agent for Sohu.com and Focus.cn real estate portals and is a key marketing service provider for Pernod Ricard, which manages the Chivas and Martell brands. After the acquisition, XFMedia will become the leading advertising agency in China's online property and imported spirits sectors, key spending areas of China's high networth demographic, with over 50% share of revenues in each market, according to a report by independent market researcher MIMR. XFMedia is also the exclusive advertising agent of the real estate portal under China.com.cn, one of the two advertising agents of Sina.com's real estate portal and a key marketing service provider for spirits importer Richmonde, which manages the Johnnie Walker and Hennessy brands.
In addition to international spirits importers and major PRC and Hong Kong property developers, JCBN Group has a clientele list including international financial institutions and the government of Hong Kong.
Under the purchase agreement, XFMedia acquires 100% control of JCBN Group for an initial cash payment of US$43 million, and the vendor may be entitled to a maximum of$69,900,000 in earnout payments in cash and shares of XFMedia if JCBN exceeds certain financial performance targets in 2008 and 2009. According to a due diligence report prepared by XFMedia's accounting adviser RSM Nelson Wheeler, JCBN Group's unaudited consolidated revenue and net income for the year ending December 2006 were US$17.3 million and US$4.2 million, respectively.(1)
About Xinhua Finance Media Limited
Xinhua Finance Media (NASDAQ:XFML) is China's leading diversified financial and entertainment media company targeting high net worth individuals nationwide. The company reaches its target audience via TV, radio, newspapers, magazines and other distribution channels. Through its five synergistic business groups, Advertising, Broadcast, Print, Production and Research, XFMedia offers a total solution empowering clients at every stage of the media process and keeping people connected and entertained.
Headquartered in Beijing, the company has offices and affiliates in major cities of China including Beijing, Shanghai, Guangzhou, Shenzhen and Hong Kong. For more information, please visit http://www.xinhuafinancemedia.com .
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, quotations from management in this announcement contain forward-looking statements. Statements that are not historical facts, including statements about XFMedia's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those contained in any forward-looking statements. Potential risks and uncertainties include, but are not limited to, risks outlined in XFMedia's filings with the U.S. Securities and Exchange Commission, including its registration statement on Form F-1. All information provided in this press release is as of the date hereof, and XFMedia undertakes no duty to update such information, except as required under applicable law.
(1) These figures are unaudited and are being provided to comply with
requirements of the Tokyo Stock Exchange which requires Xinhua Finance
Limited, the parent company of XFMedia, to provide this information in
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Source: Xinhua Finance Media Limited