Focus Media, China's market leader in providing flat-panel display-based advertising, is to buy internet advertising agency Allyes Information Technology. The deal will be worth up to US$300 million, the Financial Times reported. Jason Jiang, Focus Media's chairman and CEO, said the acquisition extended the company's lifestyle media platform and meant it could target high-end urban customers through the internet. NASDAQ-listed Focus Media will pay US$70 million in cash and US$155 million in newly issued shares, with a further US$75 million in new shares due if Allyes reaches its 2008 earnings target. Focus Media this week reported 177% year-on-year growth in revenues for the fourth quarter of 2006, with sales reaching US$68 million.