AirMedia To Divest Two Unprofitable Product Lines - Quick Facts

(RTTNews) - AirMedia Group Inc. (AMCN) announced that it had reached agreements with two media companies to divest its TV-attached digital frames and airport digital TV screens business. The company said these two unprofitable product lines had been negatively contributing to its overall results for years. The divestiture is expected to have an immediately positive effect on the company's results of operation.

AirMedia reached an agreement with Beijing Tianyi Culture Development Co., Ltd., a third party unrelated to AirMedia, on January 13, 2015, pursuant to which AirMedia will sell 81% equity interest of Beijing AirMedia Jinsheng Advertising Co., Ltd., which is the operating entity of AirMedia's TV-attached digital frames business.

On December 12, 2014, Beijing East Jiacheng Culture Media Co., Ltd., a third party unrelated to AirMedia, and AirMedia established a joint venture, Beijing AirMedia Jiacheng Advertising Co., Ltd., in which East Jiacheng has 70% equity interest with subscribed capital contribution of $3.4 million. Pursuant to the joint venture arrangement, AirMedia will transfer all relevant assets, liabilities and managerial duties with regard to the airport digital TV screens business to Jiacheng Advertising.

The company expects the decrease in total revenues in 2015 due to the divestiture of the two unprofitable product lines to be less than 10% of its total revenues in 2014.