Activity in the Chinese media sector has escalated yet again as Ideation makes its debut move – a takeover of SearchMedia, an operator of outdoor billboard and in-elevator advertising networks.

The deal has redomiciled Ideation from Delaware to the Cayman Islands. "The redomiciling was complicated. It involved the merger of Ideation Acquisition into a wholly-owned Arizona subsidiary, and then the redomiciling of that Arizona subsidiary to the Cayman Islands. The redomiciling was done because substantially all of the business operations of SearchMedia are conducted outside the United States," said Tim Gardner, associate at Latham & Watkins.

Qinying Liu, one of the shareholders of SearchMedia, will continue with the company as co-chairman of the board of directors. They face tough competition in this arena -particularly from VisionChina Media, which recently merged with Digital Media Group to create the largest mobile television advertising network in China. "This transaction exemplifies the emerging strength of the Chinese technology economy, [and] it also highlights a growing consolidation in the Chinese media sector," said David Lee, partner at Orrick, Herrington & Sutcliffe, who advised DMG on the transaction.

 

• VisionChina Media looks underground