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  "documentTitle": "Focus Media Holding Ltd. (FMCN)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "presentationDate": "2011-11-21 00:00:00",
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      "text": "FMCN materially overstates the number of LCD screens in its core business.",
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      "text": "LCD screen count: 178,382",
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      "text": "Muddy Waters's research process was exhaustive, and included reading and analyzing the SAIC files for 160 companies, all of FMCN's conference call transcripts, and all of FMCN's SEC filings and press releases.",
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      "text": "It actually has fewer than 30,000 screens in Tier I cities, despite claiming to have in excess of 50,000 Tier I screens. (We estimate that Tier I effective advertising rates are approximately 141.9% higher than those of Tier II cities.)",
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      "kind": "paragraph",
      "text": "III. About this Report\nMuddy Waters's team had a team of 12 people with expertise in accounting, finance, law, advertising, and entrepreneurship began working on FMCN this summer. We initially became concerned about the company because of its peculiar acquisition activity.",
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      "kind": "paragraph",
      "text": "II. Organization of this Report\nThis report primarily highlights three behaviors: Olympus-style acquisition overpayments, unjustified write-downs in order to dispose of acquisitions likely for non-good faith reasons, and continuous insider self-dealing.",
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      "text": "FMCN claims that the majority of its LCD screen network is in \"heavy-traffic areas of commercial office buildings\"; however, network-wide only approximately 30% of screens are in office buildings.",
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      "text": "IV. Summary\nLCD Screen Fraudulent Overstatement and Misrepresentations\nFMCN materially overstates the number of LCD screens in its core business. FMCN's SEC filings state that it has 178,382 screens, while according to its media kit, it has fewer than 120,000, a 50% overstatement.",
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      "text": "7 State Administration of Industry and Commerce\n8 http://ir.focusmedia.cn/phoenix.zhtml?c=190067&p=irol-newsArticle&ID=1631895&highlight=\n9 Conversations with analysts and FMCN.\n10 FMCN 12/31/10 20-F, Page 40",
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