News Home > Corporate Internet
Disney and Google Prepare Bid for Chinese Digital Media Company
A consortium of American companies which include Disney and Google could be on the verge of buying a significant stake in China’s largest online advertising company, Bus Online.
The negotiations are poised for the Disney consortium to buy between 30 and 40 per cent of the Chinese digital media company in an investment which is expected to break the $100 million barrier.
Disney has already invested significant resources into China as it looks to spread its brand in Asia. In November last year, Disney broke a 20 year deadlock with Chinese authorities signing an agreement to build a theme park in Shanghai.
Disneyland Shanghai will encompass more than 1,700 acres of land, attracting some 45 million tourists each year. The resort is expected to cost Disney $3.5 billion putting it among one of the largest ever foreign investments in Chinese markets.
The deal for Bus Online will form a part of Disney’s online marketing strategy to promote powerful brands such as Mickey Mouse to China’s masses. A source told Reuters: “To Disney, the deal is not just about sharing in the growth of China’s advertising market but more about the promotion of Disney, the brand itself, and this is strategically important to Disney in China.”
Google will be a significant investor in the consortium, perhaps seeing Bus Online as an alternative solution to growing influence in China’s online advertising market. The home grown Bus Online has opportunities for exponential growth in Chinese advertising where Google’s own advertising products are struggling in the market.
Corporate Internet news posted by Frank Hudson on 09 February 2010
