Adrian J Cotterill, Editor-in-Chief
‘Focus Media Sinks in Muddy Waters’ writes the Wall Street Journal, ‘Focus Media Shares Crater; Analyst Alleges Fraud‘ writes Forbes (there are many more) and there have even been regular bulletins on CNBC.
There seem to be three main allegations: -
A “significant overstatement” of the number of screens in its LCD network ”Olympus-style acquisition overpayments” Focus Media insiders selling at least USD 1.7 billion worth of stock since its 2005 IPO On Monday at one point, shares in Focus Media Holding Limited (Nasdaq: FMCN) fell well over 60% in trading.
I know it is easy to be wise after the event but there is a reason why the Greater Fool Theory has never been proven wrong.
With keywords like ‘China’ and buzzwords ‘digital’, ‘advertising’ there were many who (literally) bought in.
However many screens they are (finally) proven to have or have not, it will be interesting to see how they count them all as the whole network is run by Sneakernet.
If we remember correctly their CFO was a speaker (via the web, not in person) at one of the Digital Signage Investor Conferences many years back (at least 4 years) and we don’t remember him coming across particularly well.
This entry was posted on Monday, November 21st, 2011 at 19:37 @859 and is filed under DailyDOOH Update. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Tuesday, November 22, 2011
This just emphasizes the need for DOOH to go online. From DailyDOOH » Focus Media Group Accused Of Fraud
via dailydooh.com
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