Focus Media Included on NASDAQ 100, Considering Multi-Billion Assets Strategy for '08

With recently renewed interest in the stock by analysts and the business media, Focus Media (FMCN) has also won a spot from its growth on the NASDAQ 100 index. The change takes effect on Dec. 24. FMCN and several other stocks replace XM Satellite Radio, Ericsson and others currently in the index. Focus Media has done well on the NASDAQ over the period of the last few weeks. The stock closed up about 3% yesterday and another 1% today to $57. The average analyst target is currently around $63, and the price-earnings ratio is about 52.

Also, Focus Media is exploring a possible carve-out of two of its higher-growth units. The public offering would be in the first-half of 08, TheStreet.com reports, although it has not been determined where shares would be traded. The two units are Internet advertising and wireless advertising. Analysts estimate that Focus Media’s Internet advertising business could be sold for (US$) $4 - $6 billion, and about $1.7 billion for the wireless advertising portion.