AirMedia to Establish Joint Venture with China Eastern Group
March 03 2008 - 7:00AM
PR Newswire (US)
BEIJING, March 3 /Xinhua-PRNewswire-FirstCall/ -- AirMedia Group
Inc. (NASDAQ:AMCN), the operator of the largest digital media
network in China dedicated to air travel advertising, today
announced that it has entered into a definitive agreement with
China Eastern Media Corporation, Ltd., a subsidiary of China
Eastern Group and China Eastern Airlines Corporation Limited that
operates the media resources of China Eastern Group, to establish a
joint venture. China Eastern Media Corporation will hold 51% shares
of the new joint venture and AirMedia will hold 49% shares. The
operation period of the joint venture is currently fixed at 15
years. The joint venture will obtain concession rights to
exclusively manage various media resources from its shareholders as
set forth in the definitive agreement, including the digital TV
screens on airplanes of China Eastern Airlines, and will pay
concession fees to its shareholders as consideration. During the
operation period of the joint venture, unless prior written
approval is obtained from the other party, each shareholder should
not lease or authorize a third party in any way to operate the
media resources set forth in the agreement. "I am thrilled about
this innovative strategic partnership which will further strengthen
our relationship with China Eastern Group and help secure our
current concession rights with them in the long term," remarked
Herman Man Guo, Chairman and Chief Executive Officer of AirMedia.
"We intend to continue to build similar strategic partnerships with
our major resource partners to further secure and retain our
important concession rights with China's key airports and
airlines." About AirMedia Group Inc. AirMedia Group Inc.
(NASDAQ:AMCN) operates the largest digital media network in China
dedicated to air travel advertising. AirMedia has contractual
concession rights to operate digital TV screens in 52 airports,
including 28 out of the 30 largest airports in China, and has
contractual concession rights to place its programs on the routes
operated by 9 airlines, including the three largest airlines in
China. In addition, AirMedia also has contractual concession rights
to operate 46-inch digital frames and large size digital frames
ranging from 63 to 70 inches in several major airports. AirMedia
also offers advertisers other media platforms in airports, such as
360-degree LED displays, mega display screens, and shuttle bus
displays etc. For more information about AirMedia, please visit
http://www.airmedia.net.cn/ . Safe Harbor Statement This
announcement contains forward-looking statements. These statements
are made under the "safe harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as "will," "may,"
"would," "expect," "anticipate," "future," "intend," "plan,"
"believe," "estimate," "confident" and similar statements. Among
other things, the quotations from management in this announcement,
as well as AirMedia Group Inc.'s strategic and operational plans,
contain forward-looking statements. AirMedia may also make written
or oral forward-looking statements in its periodic reports to the
U.S. Securities and Exchange Commission on Forms 20-F and 6-K,
etc., in its annual report to shareholders, in press releases and
other written materials and in oral statements made by its
officers, directors or employees to third parties. Statements that
are not historical facts, including statements about AirMedia's
beliefs and expectations, are forward-looking statements. Forward-
looking statements involve inherent risks and uncertainties. A
number of important factors could cause actual results to differ
materially from those contained in any forward-looking statement.
Potential risks and uncertainties include, but are not limited to,
if advertisers or the viewing public do not accept, or lose
interest in, our air travel digital media network, we may be unable
to generate sufficient cash flow from our operating activities and
our prospects and results of operations could be negatively
affected; we derive substantially all of our revenues from the
provision of air travel advertising services, and if there is a
downturn in the air travel advertising industry, we may not be able
to diversify our revenue sources; if we are unable to retain
existing concession rights contracts or obtain new concession
rights contracts on commercially advantageous terms that allow us
to place or operate the digital TV screens in airports or on
airplanes, we may be unable to maintain or expand our network
coverage and our business and prospects may be harmed; a
substantial majority of our revenues are currently concentrated in
the five largest airports and three largest airlines in China, and
if any of these airports or airlines experiences a material
business disruption, our ability to generate revenues and our
results of operations would be materially and adversely affected;
AirMedia's limited operating history makes it difficult to evaluate
our future prospects and results of operations; and other risks
outlined in AirMedia's filings with the U.S. Securities and
Exchange Commission. AirMedia does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law. For more information, please contact: Investor
Contact: Raymond Huang Investor Relations Director Tel:
+86-10-8460-8678 Email: FD Beijing Julian Wilson Tel:
+86-10-8591-1951 Email: DATASOURCE: AirMedia Group Inc. CONTACT:
Investor Contact: Raymond Huang, Investor Relations Director of
AirMedia Group Inc., +86-10-8460-8678, or ; Or Julian Wilson of FD
Beijing, +86-10-8591-1951, or
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