Focus Media Giving Away Cash?

I am becoming obsessed yesteryear the disclosures well-nigh the businesses Focus Media disposed of inward 2009. The total disclosure is inward this post - together with an explanation every bit to why Focus Media's accounting must hold upwards incorrect is inward this post.

But to summarize - Focus Media disposed of 7 businesses inward 2009.

All businesses were disposed of at a loss.

Six of these businesses were given away for no consideration at all. In 1 consideration of a depression unmarried digit publish of millions of dollars was paid.

Influenza A virus subtype H5N1 bulk of these businesses were given dorsum to their master owners.

Influenza A virus subtype H5N1 bulk of these businesses are inward British Virgin Islands subsidiaries.

And the accounting for these transactions is messed up.

That said, the cash menses contestation from the latest 20F provides to a greater extent than information.

Here is a region from the cash menses statement:

Year			2009				2010				2011
Investing activities:
Purchase of equipment		$	(10,654,598	)		$	(18,692,608	)		$	(38,918,317	)
Cash of disposed subsidiary			(27,315,949	)			(40,805,068	)			—
Proceeds from sale of a subsidiary			—				116,872,231				7,296,097
Purchase of subsidiaries together with earn-out payment paid to start subsidiaries, internet of cash acquired			(92,411,545	)			(40,186,684	)			(13,228,135	)
Investment inward an equity method investee			—				—				(61,003,263	)
Deposit refunded to start subsidiaries			329,516				—				—
Proceeds from disposal of fixed assets			196,115				471,128				671,950
Increase inward restricted cash			—				—				(199,346,126	)
Cash paid for short-term investments			(29,257,303	)			(137,551,150	)			(1,124,033,872	)
Sale of short-term investments			865,589				29,290,296				1,044,680,415
Net cash used inward investing activities		$	(158,248,175	)		$	(90,601,855	)		$	(383,881,251	)

I desire yous to discovery the highlighted line...

In those susbsidiaries disposed of inward 2009 at that topographic point was embedded 27,315,949 dollars inward cash.

These subsidiaries were given away.

If yous translate the accounts literally this society has been giving away cash.

I accept a handful of explanations for this demeanour only plausibility is becoming strained. Perhaps Focus Media's investor relations region tin aid (I accept sent them this post inward advance only accept received no reply).

Anyone else amongst an explanation could yous delight set it inward the comments.





John