Aegis sets up Chinese joint venture

UK media buying group Aegis is setting up a joint venture in China, expanding its presence in a key market. Aegis is taking a 17.7% shareholding in Charm Communications, which it described as one of China's leading TV airtime buying and advertising agencies, with $143m (£88.6m) in gross assets. Established in 1995, Charm provides television advertising services to China Central Television (CCTV), the state-owned broadcaster that controls nine of China's top 10 television channels. Aegis's media buying network Vizeum and Charm are also establishing a joint venture that will operate as Vizeum China. Aegis said that Vizeum's China operation would form the initial 40% of the joint venture's revenues, while Charm will transfer local clients to form the remaining 60%. The shareholder structure will move towards 100% ownership by Aegis by 2024. "This deal significantly extends our Chinese operations and will further transform our prospects in this exciting and dynamic market," said the Aegis Media chief executive, Jerry Buhlmann. "China is already the second largest-advertising spending market in the world and continues to experience strong growth." He Dang, founder and chief executive of Charm, who will be chairman of the joint venture, added: "The combination of Charm's leading market position in television advertising in China and Aegis Media's world-class digital and new media capabilities mean we will be able to provide our clients with best-in-class integrated marketing solutions across key advertising platforms. "As well as enhancing our offering in China, this new joint venture will give our Chinese clients access to the Aegis global network, bringing them the tools and expertise to extend their brands in markets around the world." Aegis first moved into China in 1998 and all its subsidiaries – Vizeum, Carat, Isobar and Posterscope – now operate there, with a total of 700 staff. The company does not break down how much money it makes in China, but in August reported "modest" revenue growth in the first half of last year, pointing to a tough comparison with the Beijing Olympics year of 2008 • To contact the MediaGuardian news desk email [email protected] or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. • If you are writing a comment for publication, please mark clearly "for publication".