Enjoy Media has signed an agreement to acquire 60% of Jinan HuiZhi Advertising Limited, the largest online advertising and marketing service provider in Shandong Province.
The total consideration, US$1,113,861, is to be settled by restricted common shares of Enjoy Media subject to satisfactory due diligence and certain performance targets.
With this acquisition, Enjoy Media will be able to expand its current advertising businesses into the lucrative Shandong Province market and HuiZhi will be able to expand its online advertising to the Guangdong Province with the help of Enjoy Media. Both provinces are among the top five highest GDP in China.
HuiZhi is a subsidiary wholly owned by Jinan WangJie Marketing and Planning Company Limited, a consulting company specializing in event marketing.
HuiZhi acts as an online advertising sales agent for more than 60% market share of the local portals in Shandong. HuiZhi expects to increase its online advertising revenue to at least US$600,000 with a net profit of US$175,000 in 2006.