China sees media shareholders write to board to request replacement of Chairman Limin

Chinese media Chairman Limin (Sina Science and Technology map) Sina Science and technology news Beijing Time November 16, the Chinese media (NASDAQ:VISN) major shareholder Oak Investment (Oak Investment Partners) and Gobi Investment (Gobi Partners)　　Tuesday letter to China as the media board, asked the board to find another candidate to replace Limin as the chairman of the Chinese media.　　Oak Investment and Gobi Investment in the letter, China sees the media board needs to make major changes in the direction and management of the company, including replacing the incumbent chairman, Limin, etc. The following is the full text of the letter: Dear Chinese Media Board: As you know, both of our companies are the main shareholders of the media, in China, as the media in January 2010 acquisition of Digital Media Group (DMG) won the shares of the Chinese media.　　We are very worried about the future of the company and think that the board needs to make major changes in both the direction and management of the company, including replacing the incumbent chairman, Limin. Our view is that Limin has been poorly managed by the company in recent years.　　For example: * In the middle of 2008, the Chinese media bought 6 smaller advertising companies, and the deals built on the "profitability Payment scheme" brought 89.1 million of billions of dollars in writedowns in July 2010.　　* After acquiring the Metro advertising business of the digital media group, the Chinese media has inexplicably dismissed most of the key sales teams and failed to provide the necessary resources to successfully operate the business, resulting in a consolidation failure after the completion of the acquisition transaction. * Since Chen Lianyi resigned as the CFO of the Chinese media in August 2010, Limin has not hired a CFO for the company for 15 months.　　No one in China's media management team has enough expertise to stand up and question these bad decisions.　　* During Li's management company, China saw the shares of the media had fallen sharply from August 1, 2008 to $1.52 in November 11, 2011.　　Since the acquisition of digital Media Group by the media, our experience in direct contact with Limin provides a further insight into why the media is not functioning properly. As you know, our two companies-oak investment and Gobi investment-have filed a lawsuit against China's media, which is related to the 160 million US dollar takeover of the digital media Group in 2009, when we accused the Chinese media of a deliberate default of two 30 million dollars in payments ( China saw the media paid 100 million of dollars in the first payment. The media then filed fraud charges to justify payment-related charges for oak investment and Gobi investment. (In our view, Lee's goal from the outset was simply to avoid or postpone the payment of a 60 million-dollar extra purchase price that he agreed to share with the digital media group at the time of the acquisition.East pays these two payments. 11 months later this year November 4, the New York State Supreme Court dismissed all allegations of fraud against investment in oak and the Gobi, saying: "It is clear that the Chinese media have failed to maintain a workable case for fraudulent prosecutions (for oak Investment and Gobi investment)." "We believe that this decision has made our assertion effective, that the Chinese view of the media's proceedings is of no benefit to the company itself or to its shareholders."　　On the contrary, we believe that the facts will prove that the Chinese view of the media litigation waste a lot of time, energy and money, and the Chinese media management should have spent the time, energy and money on the construction of the company's business. New York State The Supreme Court also approved a motion by the digital media group shareholder to seize 30 million of billions of dollars in China's media assets because we "have proved that [digital Media Group shareholders] are more likely to charge success than unsuccessful". The final 30 million-dollar payment is scheduled for November 16, 2011, and assuming that the Chinese media do not pay this amount, then we will request the court to expand the seizure of the Chinese media assets, to include this number.　　Our losses amounted to more than 90 million dollars, and the plan requested the Court to approve the amount of compensation commensurate with this figure. We would like to state one point: The reason we asked the board to replace Limin was not because we were angry at him for not complying with the agreement we had reached with us on the acquisition of the digital media group deal, or because we thought his lawsuit had proved to be a frivolous act against our company, But because as a shareholder of China's media, we think that under his leadership, mismanagement has become endemic to the company.　　Limin's move to buy digital media groups is an example. We firmly believe that the Chinese media has a very solid core business, in China's first-tier cities in the subway and bus advertising market has an excellent foundation, on this basis to build an exciting high-growth business, This is when we agreed a few years ago that Shanghua to sell digital media groups to the media and believed that the merged company would be able to achieve the future. As part of this takeover deal, we also agreed to receive a large number of Chinese-video media stocks. In the past two years, this prospect has largely failed, because the Chinese media have failed to implement measures based on this prospect, even as the current China advertising market is booming.　　Now, it is clear that the market is no longer trusting Limin's leadership of the company – its share price has been at a fairly low level for many months, compared with the revenue from China's media, which clearly shows that investors have given up on the current management team. For China's media board, it is time to take action to find new management for the company, and to start with Limin.　　As the shareholder of the Chinese media, we believe that you must exercise the fiduciary duty as the board of Directors to prevent the company and its shareholders from further damage.　　Anxious reply. Sincere, oak InvestmentFellow Ren Riley Gobi Investment partner Thomas G. Tsao (Tangfeng)