Chinese portal Sina.com (SINA) will acquire advertising company Focus Media (FMCN) for $1 billion in stock. The assets include Focus Media’s online adveritisng company Allyes, as well as its LCD display network, poster frame network and anin-store network.
The deal is remarkable because only a year ago, speculation had Focus Media acquiring Sina in a stock-swap, not the other way around.
Last week, we squashed a rumour that Google would buy Focus Media. The same report named Microsoft as an interested suitor. So maybe somebody was trying to drive up Focus Media’s price.