Orrick Advises Digital Media Group on its US$160 Million Sale to VisionChina Media

Beijing – LawFuel.com – Orrick, Herrington & Sutcliffe LLP advised Digital Media Group (DMG), a leader in China’s subway television advertising market, on its US$160 million sale to VisionChina Media (VCM), one of China’s largest out-of-home digital television advertising networks. The deal represents one of the largest acquisitions involving a venture-backed China-based private company by a public company and will create the largest and most comprehensive mobile television advertising network in China.

Under the terms of the deal, VCM will pay $40 million in cash and $60 million in stock to DMG shareholders at the closing of the transaction. VCM will pay installments of $30 million each on the first and second anniversaries of the deal. The deal is expected to close in the first quarter of 2010.

The combined company will operate bus television networks in 18 of China’s most affluent cities, including Beijing, Guangzhou and Shenzhen. In addition, the company will also have exclusive subway networks in eight key cities in China, including Beijing, Guangzhou, Shenzhen and Shanghai, as well as on Hong Kong’s Airport Express line.

The Orrick team was led by Silicon Valley corporate partner David Lee and includes Silicon Valley corporate partner Mark Seneca, San Francisco tax partner Steve Malvey, Shanghai corporate partner Elizabeth Cole, Silicon Valley Compensation & Benefits partner Nancy Chen, Hong Kong Structured Finance of counsel Donna Healy, Silicon Valley Corporate senior associate Jerome Ku and Silicon Valley Corporate managing associate Linda Zhou, Shanghai Corporate associate Anita Gu and Silicon Valley associate Tran Ly.

“We are pleased to have advised DMG on this transaction that will provide China with a platform for the development of a nationwide digital mobile television industry,” said David Lee. “This transaction exemplifies the emerging strength of the Chinese technology economy.”


About Orrick

Orrick, Herrington & Sutcliffe LLP is a global law firm with more than 1,100 lawyers in 21 offices in North America, Europe and Asia. The firm focuses on litigation, complex and novel finance and innovative corporate transactions. Orrick’s clients include Fortune 100 companies, major industrial and financial corporations, commercial and investment banks, high-growth companies, governmental entities, start-ups and individuals.

Orrick’s Greater China team of nearly 70 legal professionals in Beijing, Hong Kong and Shanghai has a 36 year track record in advising Chinese and international clients on domestic and cross-border matters including mergers and acquisitions, foreign direct investment, securities offerings, private equity, investment funds, securitization and structured finance, real estate finance and development, project finance, litigation and arbitration, intellectual property, restructuring, competition and antitrust law.

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