Chinese media, advertising, and urban life.

Caijing magazine's websites confirms rumors that have been swirling around tech and media circles over the weekend:

Internet giant Sina is to acquire a part of Focus Media, the company that operates most of the digital screens that display annoying advertising in Chinese office buildings and other out of home locations.

According to the Caijing article, Sina will pay USD 1 billion to acquire for an unspecified 'part' of Focus Media. Both companies are listed on NASDAQ. The article says the deal will be confirmed in an announcement to be made tonight.

The deal could give Sina a real competitive advantage over other big new media players in China.

Update: Bloomberg has released a story about the deal:

Sina Corp., operator of China's biggest Web portal, may buy part of Focus Media Holding Ltd. for about $1 billion to expand into non-Internet advertising, four people familiar with the matter said.

According to the report, the 'part' may be Focus Media's "digital out-of-home operations, which sell advertising in elevators and office buildings". What else is left of Focus Media once that part is sold?