Focus Media gets into movie theater advertising

Chinese out-of-home advertising giant Focus Media finished acquiring oddly-named Appreciate Capital Limited (''ACL''), who advertise on movie screens in 120 theaters around China. From the announcement (which, strangely enough, is worded in the first person, which isn't something I've come across before):

ACL, through its affiliated PRC entity, leases screen time from movie theatres in cities in China, and then sells those time slots to advertisers. Under its contracts with movie theatres, ACL has the right to three minutes of screen time prior to the screening of each movie shown in the theatre. Under the terms of the share purchase agreement, we made an initial deposit payment of $2.8 million to the shareholders of ACL upon signing. We will pay the shareholders of ACL additional earn-out payments calculated according to their attainment of certain earnings targets in respect of each of the years ending August 31, 2006, 2007 and 2008.

At this rate it looks like Focus Media won't be happy until their content can be seen at every public venue in China. Fortunately for them, it's an awfully big country, so they have plenty of room to grow :)