China's media is abuzz with news that Dentsu, the largest advertisement company in Japan, will cooperate with China's Focus Media (FMCN) to establish an online advertising company in China.

Named "Dian Zhong Digital", the joint venture company will be established in Beijing at the end of March with a total registered capital of US$9 million. Dentsu will take 67% of the stake in the new company and Focus Media's affiliate Huaguang Advertising (Hong Kong) the remaining 33%. Dentsu will appoint a president for the company to which it will also integrate its existing online advertising service in Beijing and Shanghai. It is expected that the new JV will achieve JPY5 billion in business revenue in the first year.

The reports say that Dentsu hopes to make use of Focus Media's extensive client base in China through this cooperation to compete with American and European advertisement companies that have already gained solid ground in the Middle Kingdom.


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