On October 10, the State Administration for Market Regulation issued an announcement, deciding to approve with restrictive conditions the acquisition of Xinchao Media by Focus Media. The announcement shows that in 2024, Focus Media held a 50 to 55 percent share of China's elevator media advertising market, ranking first, while Xinchao Media held a 5 to 10 percent share, ranking second, with the combined entity holding a total share of 55 to 60 percent. The State Administration for Market Regulation believes that the commitment plan with restrictive conditions submitted by Focus Media on September 18, 2026, can effectively reduce the adverse impact of this concentration of undertakings on competition. From the effective date, both parties to the transaction and the post-concentration entity shall comply with six restrictive conditions, including continuing to perform existing customer contracts and all their commercial terms, and continuing to provide elevator media advertising services under the principles of fairness, reasonableness, and non-discrimination. Focus Media stated that it will advance the transaction in accordance with laws and regulations, focusing on price stability and fair services. Looking back, in April 2025, Focus Media disclosed a restructuring plan, proposing to acquire 100 percent equity in Xinchao Media through the issuance of shares and payment of cash, with a preliminary valuation of 8.3 billion yuan. The revised draft acquisition plan disclosed on September 24 this year shows that the company intends to purchase 90.02 percent equity in Xinchao Media held by 45 counterparties including Zhang Jixue, Chongqing JD, and Baidu Online, with a total transaction consideration of 7.794 billion yuan, of which the cash consideration is 29.6495 million yuan and the share consideration is 7.765 billion yuan. After the transaction is completed, Xinchao Media will become a subsidiary of the listed company, and it will not result in a change of control.
Baidu IncFocus Media Information Technology Co LtdSAMR conditionally approves Focus Media's acquisition of Xinchao Media, clearing the key regulatory hurdle for the deal.
SAMR conditionally approves Focus Media's acquisition of Xinchao Media, allowing the target to be acquired.
