Orrick, Herrington & Sutcliffe LLP advised Digital Media Group (DMG), a leader in China's subway television advertising market, on its US$160 million sale to VisionChina Media (VCM), one of China's largest out-of-home digital television advertising networks. The deal represents one of the largest acquisitions involving a venture-backed China-based private company by a public company and will create the largest and most comprehensive mobile television advertising network in China.

Under the terms of the deal, VCM will pay $40 million in cash and $60 million in stock to DMG shareholders at the closing of the transaction. VCM will pay installments of $30 million each on the first and second anniversaries of the deal. The deal is expected to close in the first quarter of 2010.

The combined company will operate bus television networks in 18 of China's most affluent cities, including Beijing, Guangzhou and Shenzhen. In addition, the company will also have exclusive subway networks in eight key cities in China, including Beijing, Guangzhou, Shenzhen and Shanghai, as well as on Hong Kong's Airport Express line.

The Orrick team was led by Silicon Valley corporate partner David Lee and includes Silicon Valley corporate partner Mark Seneca, San Francisco tax partner Steve Malvey, Shanghai corporate partner Elizabeth Cole, Silicon Valley Compensation & Benefits partner Nancy Chen, Hong Kong Structured Finance of counsel Donna Healy, Silicon Valley Corporate senior associate Jerome Ku and Silicon Valley Corporate managing associate Linda Zhou, Shanghai Corporate associate Anita Gu and Silicon Valley associate Tran Ly.