Walt Disney Co. is in advanced talks to buy a stake in China's largest in-bus digital media and advertising company, Bus Online. This deal that could offer the U.S. entertainment giant a new platform to promote Disney in China, three sources told Reuters. Google Inc. was among investors in the Disney-led consortium, the Reuters sources said on Monday.
The consortium planned to buy a stake of between 30 and 40 percent in Bus Online for more than $100 million via a purchase of old and new shares to be issued by the company in private placements, said the sources. According to Reuters, Bus Online is China's No.1 in-bus digital media and advertising company, with revenue of about 314.5 million yuan ($46.07 million) in 2009.
Disney made a deal in November to build a theme park in Shanghai, and the Bus Online network could provide a media foothold through advertising on public transport. Yum! Brands' fried chicken restaurant chain KFC also told Reuters that it would sign a deal with Bus Online to allow the Chinese company to set up screens in KFC's more than 2,000 outlets across China.
