Focus Media
Focus Media Information Technology formerly Focus Media Holding is a Chinese company which operates the largest out-of-home advertising network in that country, consisting predominantly of digital signage screens, and claims to own the country's largest Internet advertising agency.
| Type | public |
|---|---|
| SZSE: 002027 | |
| Industry | Advertising agency |
| Founded | 2003 |
| Headquarters | Shanghai, China |
Key people | Jason Jiang, Chairman Zhi Tan, CEO Mingdong Wu, CFO Congrong Chen, COO |
| Products | advertising displays, internet and mobile phone advertisement |
| Revenue | $68.229 million USD (2005) |
| $22.786 million USD (2005) | |
| $23.548 million USD (2005) | |
Number of employees | 3548 |
| Website | focusmedia.cn |
Alleged fraud
In November 2011, Muddy Waters Research reported massive fraud at the company. It alleged that the company
- has been fraudulently overstating the number of screens in its LCD network by approximately 50%,
- has claimed to acquire, write down, and dispose of companies that it never actually purchased,
- has written at least 21 acquisitions down to zero and then given them away for no consideration,
- has been used by insiders as their counterparty in trading in and out of subsidiary Allyes, with several individuals earning a total of at least $70.1 million, while shareholders lost $159.6 million.[1]
Focus denied the allegations. The company was subsequently taken private by a private equity consortium in May 2013.
References
- Soham Chatterjee and Ryan Vlastelica (21 November 2011). "Focus Media plunges after Muddy Waters charges". Reuters. Retrieved 25 November 2011.
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