Australian telecommunications company Telstra (TLS) has purchased a 51% stake in China's SouFun.com, one of China's top real-estate and home furnishing and improvement website, for US$254 million.
SouFun provides information, advertising and listing services to China's growing online real- estate and home furnishing and improvement sectors. SouFun's primary revenue is generated by online display advertising on the website.
Vincent Mo, SouFun founder and CEO, will retain 30.9% share while IDG holds a 14.7% share and the remaining 3.4% share is held by management.
Telstra's Chief Financial Officer, John Stanhope, says, "SouFun is a high growth company and an extremely strong business. SouFun is cash flow positive from day one and is expected to contribute net revenue and EBITDA of AU$52 million and AU$18 million respectively in FY2007."
SouFun will continue to operate under the leadership of Mo and his local management team.