Focus Media's acquisition of Xinchao Media clears antitrust review with six restrictive conditions valid for five years

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The State Administration for Market Regulation announced on October 10 that it has approved, with restrictive conditions, Focus Media Information Technology's acquisition of equity in Chengdu Xinchao Media Group, marking important progress in the consolidation of the elevator media industry. The announcement shows that in 2024, Focus Media held a 50 to 55 percent share of China's elevator media advertising market, ranking first and presumed to have a dominant market position. Xinchao Media held a 5 to 10 percent share, ranking second. The combined entity would hold a 55 to 60 percent share, strengthening its dominant market position. The State Administration for Market Regulation requires both parties and the combined entity to fulfill six restrictive conditions, including continuing to perform existing customer contracts and commercial terms, maintaining service levels no lower than before the transaction, ensuring that annual actual transaction prices in each city do not exceed the actual transaction prices of both parties in the corresponding cities during the 24 months before the effective date, providing services fairly, reasonably, and without discrimination, relinquishing all rights under exclusive clauses already in effect with property management companies and other location resource holders, and not entering into exclusive clauses or automatic renewal clauses in new or renewed agreements, as well as improving antitrust compliance systems, valid for five years. Looking back at the transaction process, Focus Media launched the acquisition in April 2025, planning to acquire 100 percent of Xinchao Media at a valuation of 8.3 billion yuan. In March 2026, because some original transaction counterparties no longer participated, the plan was changed to acquiring 90.02 percent of shares through the issuance of shares and payment of cash, with the transaction consideration adjusted to approximately 7.794 billion yuan. In the first half of 2026, Focus Media achieved revenue of 5.991 billion yuan, down 1.98 percent year on year, and net profit attributable to the parent company of 3.128 billion yuan, up 17.39 percent year on year.

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新潮传媒集团有限公司i
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Xinchao Media is being acquired by Focus Media, but the approval imposes six restrictive conditions including price caps and giving up exclusive clauses, which could constrain its business.