Reuters reports Aegis will extend its presence in China by forming a joint venture with Charm, a leading media agency which handles much of the ads placed on the country’s largest national TV network China Central Television (CCTV).
Aegis said in a statement it would acquire 17.7% of Charm Communications and form a JV between its Vizeum arm and the Chinese firm which will operate as Vizeum China.
Vizeum’s China operation will form the initial 40% of the joint venture’s revenues and Charm will transfer local clients to form the remaining 60%. The structure will change over time and move towards 100% Aegis ownership by 2024. The gross assets of Charm are $143 million, Aegis said.
Jerry Buhlmann, Aegis Media CEO, said the deal would transform Aegis’ prospects in China: “China is already the second largest advertising spending market in the world and continues to experience strong growth. Charm is a great business with a strong management team and a track record of profitable growth. Our partnership will be beneficial to both companies. Our international reach combined with Charm’s blue chip local client base, strong market knowledge and relationships will create a compelling offering.”