Focus Media Information Technology Co.,Ltd. (002027) has reignited its massive acquisition of Xinchao Media, proposing to acquire a 90.02% stake through a combination of share issuance and cash payments, with the transaction valued at 7.794 billion yuan. The deal, which was accepted for review by the Shenzhen Stock Exchange in January 2026, had its review suspended due to material updates. As of now, the company and its intermediaries have completed the necessary financial data updates, and on August 29, 2026, the company received notice from the exchange approving the resumption of the review process.
The critical question surrounding this merger is whether it complies with antitrust regulations. According to data from Guanyan Research Network, Focus Media Information Technology Co.,Ltd. currently holds approximately 74% market share in China's elevator media industry, while Xinchao Media accounts for 14% and other players collectively hold 12%. Should the merger proceed, the combined entity would command over 80% of the elevator media market. However, when Focus Media Information Technology Co.,Ltd. broadens its definition to the entire outdoor advertising sector, its market share drops from over 80% to a mere 17.2%, leading the company to assert that the merger meets all antitrust compliance requirements.
Where the antitrust concerns lie
The transaction structure is heavily weighted toward share-based consideration. Due to some original transaction parties withdrawing from the deal, the target assets have been adjusted to 90.02% of Xinchao Media's shares, with the transaction price set at 7.794 billion yuan. This includes cash consideration of 29.6495 million yuan and share consideration of 7.765 billion yuan, with the issuance price adjusted to 5.06 yuan per share. This implies that share consideration constitutes approximately 99.62% of the total transaction value.
Xinchao Media, established in April 2007 and chaired by Zhang Jixue, operates as a technology-driven media enterprise blending traditional media with internet technologies. The company operates advertising media networks in residential communities across major Chinese cities through fixed and flexible rental models, while also expanding its reach into lower-tier cities through cost-effective third-party partnerships. As of the reporting period, Xinchao Media's outdoor advertising platform operates approximately 810,300 advertising points across more than 200 cities nationwide.
Focus Media Information Technology Co.,Ltd. stands as China's largest lifestyle circle media network, primarily engaged in developing and operating outdoor advertising within this space. Its core products include building media (elevator television and elevator poster media) and cinema screen advertising, covering the work, life, entertainment, and consumption scenarios of urban mainstream consumers. As of July 31, 2026, the company's network spans 385 domestic cities, Hong Kong SAR, and international markets including South Korea, Thailand, Singapore, Indonesia, Malaysia, Vietnam, India, Japan, the UAE, Australia, and Brazil. The company operates approximately 2.25 million self-operated media units, comprising around 1.258 million self-operated elevator television devices across 302 domestic cities and multiple overseas markets, roughly 992,000 self-operated elevator poster units covering 113 domestic cities and select international locations, plus cinema media partnerships with 3,613 theaters and 24,000 screens across 332 domestic cities.
In the elevator media sector, Focus Media Information Technology Co.,Ltd. is the undisputed leader while Xinchao Media ranks second. The combined market share exceeding 80% raises legitimate questions about potential monopolistic dominance and whether this could impede the transaction. According to the State Council's regulations on concentration of business operators filing standards (State Council Order No. 773), a concentration filing is mandatory if combined global turnover of all participating operators exceeds 12 billion yuan with at least two operators each exceeding 800 million yuan in domestic turnover, or if combined domestic turnover exceeds 4 billion yuan with at least two operators each exceeding 800 million yuan domestically. Focus Media Information Technology Co.,Ltd. reported 2025 revenue of 12.759 billion yuan while Xinchao Media recorded approximately 1.73 billion yuan, both far exceeding the 800 million yuan threshold, with the combined total well above 4 billion yuan.
Allegations of abusing market dominance
On May 23, 2026, Chuangshi Technology, a new entrant in the elevator media space, published an open letter to Focus Media Information Technology Co.,Ltd., thrusting the industry leader into the antitrust spotlight. The letter alleges that Focus Media Information Technology Co.,Ltd., leveraging its over 60% market share in the elevator media segment, has been enforcing exclusive agreements with property management companies, effectively imposing a "choose one" policy. The allegations include coercive tactics such as offline interference and threats of contract termination to prevent competitors from entering buildings. Chuangshi Technology claims multiple property managers reported having idle advertising spaces but being unable to introduce alternative partners due to exclusivity clauses in their contracts with Focus Media Information Technology Co.,Ltd.. Some property firms also reported receiving what was described as a "targeted elimination plan" against Chuangshi Technology at the property level.
Chuangshi Technology further asserts that these exclusivity arrangements extend beyond written terms into execution, with instances of interference even after legitimate contracts were signed with property owners, including threats of contract cancellation to block installation. In response, Chuangshi Technology has filed an antitrust lawsuit with the People's Court, which has accepted the case for filing. The company's legal counsel states that "direct and conclusive" evidence of Focus Media Information Technology Co.,Ltd.'s "choose one" practices has been gathered. This marks the first civil antitrust lawsuit in China's elevator media sector, filed under the category of abuse of market dominance disputes.
The regulatory review of this merger has also raised concerns about antitrust compliance. Regulators have requested that the company demonstrate how the combined entity's market share increases in media resources, advertising points, and business revenue within the segment would translate into achievable pricing advantages, while substantiating compliance with antitrust requirements.
How the company defends its position
Focus Media Information Technology Co.,Ltd. maintains that the transaction complies with antitrust law requirements, arguing that all forms of advertising media compete within the broader advertising market, with particularly direct competition occurring among outdoor advertising enterprises. Xinchao Media's competitors include well-known companies across various outdoor advertising formats. According to China Advertising Association data, based on 2024 outdoor advertising market revenue, the listed company's market share would increase from 14.5% to 17.2% post-transaction. Frost & Sullivan data, measured by elevator media resource points in 2024, shows the listed company's share rising from 24.7% to 30.2%.
The company emphasizes that the core logic of this transaction is resource complementarity and efficiency enhancement rather than excluding or restricting market competition. Post-transaction, the combined entity aims to leverage customer sharing and joint market expansion to fully utilize complementary advantages in media resources and channel networks, optimize resource allocation, reduce service costs, and improve overall industry service quality and operational efficiency. The company argues that the competitive landscape will not undergo fundamental changes post-transaction, advertisers will retain a wide range of choices, and therefore, the transaction will not significantly enhance the pricing power of the listed company or the target assets.
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