Framedia (a)

SUBJECT AREAS: Antitrust laws, Consolidations, Emerging markets, Mergers amp; Acquisitions, Regulated industries, Valuation, Venture capital.Examines an acquisition in the highly competitive new media advertising industry in China in late 2005. The transaction leads to eventual consolidation of the industry and a positive stock market reaction. Discusses valuation in the context of an Mamp;A transaction in an emerging economy and the role of private equity and venture capital in the development and the eventual consolidation of the new media advertising industry. Provides a context in which to discuss antitrust regulation, or lack thereof, on an industrial organization in China