Allyes fails to impress investors
Allyes, co-founded by chief technical officer Wang Jiangang and three high-school classmates in 1998, raised US$30 million from US-based venture capital firm IDG and Oak Investment Partners in September 2005.
Focus Media chief executive Jason Jiang was also an earlier investor and had less than 5 per cent of the company before the acquisition, according to Focus chief financial officer Daniel Wu.
Allyes, which had tried to get a Nasdaq listing, hired investment bank Morgan Stanley in an effort to raise about US$100 million in the first half of this year before dropping the offering plan at the final stages.
'Allyes has been trying for a Nasdaq listing since last year, but its revenue growth was not enough and its profit was too small,' a source said.
'Investors were not very impressed when they did their marketing in US,' the source added.