{
  "docId": "019dd923-622c-750b-8b95-e976ef3dfa16",
  "docSlug": "7f8b05d541c7",
  "documentTitle": "Focus Media Holding Ltd. (FMCN)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2011-11-21 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.7070758,
  "pageNumber": 7,
  "pageCount": 80,
  "prevPage": 6,
  "nextPage": 8,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 4,
  "notes": "This is a page from a research report (likely a short-seller report) detailing financial irregularities.",
  "elementsJson": [
    "paragraph",
    "bullet_list",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b95-e976ef3dfa16/7",
  "deckHref": "/decks/019dd923-622c-750b-8b95-e976ef3dfa16",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b95-e976ef3dfa16.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b95-e976ef3dfa16#slide-7",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "In at least 21 instances, FMCN has written acquisitions down to zero and given the companies away—usually back to their original shareholders.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-14d7-73fd-9f5a-841329afc301",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.105,
        "w": 0.601,
        "x": 0.203,
        "y": 0.165
      },
      "kind": "list",
      "text": "FMCN made a string of six small acquisitions in the internet advertising space... these acquisitions along with Allyes gave FMCN a reason to spend $198.3 million... on leasing online advertising space from related parties.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "34c1adb5-84f3-40fe-93f4-3684e7578887",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.095,
        "w": 0.601,
        "x": 0.203,
        "y": 0.495
      },
      "kind": "list",
      "text": "Ten mobile handset advertising companies, six of which FMCN never actually acquired... FMCN took an impairment charge of $41.8 million on these six 'acquisitions.' ... loss on disposal... appears overstated by $26.1 million.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "82ded763-ed3b-4125-ba4c-cc8998a800f4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.075,
        "w": 0.601,
        "x": 0.203,
        "y": 0.605
      },
      "kind": "list",
      "text": "Dotad, an unnecessary write-down of $26.8 million (100%) that smacks of impropriety. Dotad's CEO... took over a startup competitor, BFTL, right after leaving his position at FMCN as Dotad CEO.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c890fc3d-6eee-44d2-9dc1-751e3d61cc7f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "impairment charge: $26.8 million",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-14d7-73fd-9f5a-88678cf23837",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.45,
        "x": 0.203,
        "y": 0.455
      },
      "kind": "paragraph",
      "text": "Among the acquisitions we believe were unjustifiably impaired are:",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4995baf3-3d71-43a8-93c2-014d8644e543",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.105,
        "w": 0.601,
        "x": 0.203,
        "y": 0.335
      },
      "kind": "paragraph",
      "text": "We conclude that FMCN generally desires to impair its acquisitions... In at least 21 instances, FMCN has written acquisitions down to zero and given the companies away—usually back to their original shareholders.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4b46f819-30aa-4e60-aa00-a9743f76fc6c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.075,
        "w": 0.601,
        "x": 0.203,
        "y": 0.073
      },
      "kind": "paragraph",
      "text": "After writing CGEN down, FMCN gave it away to a company that is associated with the aforementioned Xiong Xiangdong. That FMCN needed a friendly party to act as the trash receptacle for CGEN only heightens our suspicions about this transaction.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a4aa4952-6ea5-4dda-a509-146e2faa614b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.601,
        "x": 0.203,
        "y": 0.795
      },
      "kind": "source-note",
      "text": "28-33 footnotes detailing sources and context for the claims.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "fd5ebefc-2c18-47de-b1f5-5ea7e2a55643",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.15,
        "x": 0.203,
        "y": 0.295
      },
      "kind": "title",
      "text": "Impairing Judgment",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9d690ffa-33fb-4266-b3ae-8b360c71a711",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "3963801d-8562-4838-8433-bf1fd850dfe0",
      "evidence": "The slide systematically identifies and exposes financial irregularities and potential accounting fraud.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 20,
      "from": 5,
      "beatId": "f108e478-2bd9-475d-b511-0386bb005a72",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Monster",
      "beatSlug": "overcoming-monster-the-monster",
      "evidence": "The report exposes contradictions and misrepresentations in FMCN's financial reports",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Hook",
      "parentBeatSlug": "hook"
    }
  ],
  "loops": [
    {
      "to": 10,
      "from": 5,
      "name": "Aha Moment",
      "slug": "03-aha-moment",
      "bestFor": "Data-heavy sections, research findings, analytical arguments",
      "matchId": "77f7466d-b36e-42bc-8a56-fe21be73b390",
      "evidence": "The report presents evidence of suspicious transactions and potential fraud",
      "position": 0,
      "objective": "Exposing contradictions in FMCN's financial reports",
      "structure": "The Problem/Question -> What the Data Shows -> The Insight",
      "confidence": 0.8,
      "description": "Establish a tension, present data, then deliver the insight that changes everything"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}