Shanghai, China - Chinese media firm Focus Media Holding Ltd. announced on Thursday that it will acquire Allyes, a China-based Internet advertising service company, for up to $300 million in cash and stock.

Focus Media, which maintains a digital display advertising network found in stores, movie theaters and even residential buildings, said the deal will extend its reach into the online ad market in China.

Allyes is the largest Internet ad agency and technology provider in China, serving over 80% of independent commercial sites and ad agencies in the country, including top portal Sina.com.

Focus Media said Allyes CEO David Zhu will remain in his current role with the company.

The transaction is expected to close by the end of March.

Related Links:
http://biz.yahoo.com/prnews/070228/cnw006.html?.v=1

http://biz.yahoo.com/ap/070228/focus_media_acquisition.html (AP)

http://www.allyes.com/english

http://www.focusmedia.cn/en