(chinadaily.com.cn)
Updated: 2008-01-25 16:08

Focus Media Holding Limited (FMCN), China's largest digital media group has announced that its wholly-owned subsidiary, Hua Kuang Advertising Company (HK), has entered into a joint venture agreement Tuesday with Dentsu, Japan's largest advertising company, to form a new Internet advertising company in China.

Named (Beijing) Dian Zhong Digital Ad Ltd, the newly-established company registered with a total sum of US$9 million, with Dentsu Inc owns 67 percent of the joint venture while Hua Kuang owns the remaining 33 percent, according to the Oriental Morning Post.

The Dentsu Group's three major advertising companies in China – Beijing Dentsu Advertising Co Ltd, Beijing Oriental Rihai Advertising Co Ltd and Shanghai Oriental Partner Advertising Co Ltd – decided to integrate all of their Internet advertising-related operations into a single specialist company in order to bolster their solutions capabilities and media buying competence.

The new company will start operation during first half of this year and aims to earn 5 billion Japanese Yen (US$47.2 million) in operating profits in the first year.

Dentsu will designate the chairperson of the board.

Jiang Nanchun, CEO of Focus Media said, “Dentsu is famous for its research, evaluation and solutions in the field of media advertising in Japan. Sharing their experience, the new company can work out an integrated marketing system based on advertising.”

Founded in 1901, Dentsu Inc is the largest advertising company brand and the fifth largest marketing and communications organization in the world. Based in Tokyo, Dentsu offers national, multinational and global clients the most comprehensive range of advertising and marketing services through its unique "Total Communications Services" approach.