AVCJ

SIG, Meridian to exit China digital advertising firm adSage

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SIG China and Meridian Capital will exit adSage Corporation after Shanghai-listed BesTV New Media agreed to acquire a majority stake in the digital advertising firm for $88.88 million.

According to a regulatory filing, BesTV will buy a 51% interest in both adSage's Beijing and Cayman-registered subsidiaries. As part of the deal, BesTV will spend $48.18 million to acquire offshore entity interests held by Newrock International, SIG, Meridian and individual investor Heung-Yeung Shum.

While SIG will exit its 27.08% stake in adSage Cayman for $32 million, Meridian is going to sell 8.12% in exchange for $9.6 million.

Founded in 2007, adSage provides digital marketing solutions across social media, search engine and mobile platforms, such as Baidu and Google. As of the end of last year, the overseas subsidiary generated RMB251 million ($41 million) in revenue but it recorded a net loss of RMB12.2 million.

AVCJ Research records show SIG and Meridian invested a total of $20 million in adSage in 2011.

BesTV New Media is a subsidiary of Shanghai Media Group. The firm's core businesses include internet protocol television (IPTV) and mobile television.

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