Asia watch, March 19, 2007

Focus Media to buy online Chinese ad network

Shanghai-based Focus Media Holding Ltd. (Nasdaq: FMCN) has agreed to acquire Allyes Information Technology Co. Ltd., a Shanghai-based online advertising network provider. The deal is valued at up to $300 million, including $70 million in cash, $155 million in Focus ordinary shares and a possible stock earn-out of $75 million. Allyes has raised $35 million in VC funding from such firms as IDG Technology Ventures and Oak Investment Partners.

U.S. firms invest $23.5M in Chinese Internet TV operator

UUSee, a Chinese operator of a video distribution website, has raised $23.5 million in VC funding. DFJ Growth Fund and Highland Capital Partners co-led the deal and were joined by Steamboat Ventures and return backers Sequoia Capital and Susquehanna International Group. Barry Schuler of DFJ Growth Fund and Dan Nova of Highland Capital have joined UUSee’s board, as part of the funding agreement. UUSee is working with TV programmers and broadcasters in China to deliver content with new interactive features, including voting, text-messaging and rich media advertising.

WI Harper closes fund VI

, an early stage VC fund focused on the U.S. and China markets, has closed its sixth fund with $133 million in capital commitments. The fund, WI Harper Inc. Fund VI, already has invested in 13 portfolio companies, including Maxthon (makers of a Web browser in China), Panorama Stock (professional photo image company in China), iKang (a health care services provider in China), HomeE (providers of home decoration and construction e-commerce sites), 3G.net (a WAP solution provider), Troodon (mobile gaming manufacturer), Mapbar (developer of LBS media and technology), LSMC (semiconductor foundry), Tenor (fabless chips), MJ Group (medical health care clinic operator across Asia), NeoPac (LED lighting solution provider), Laszlo Systems (open source Internet application software) and Ultriva (lean manufacturing software solutions provider). —PE Week staff