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Updated below: Shares of Chinese online financial news agency Xinhua Financial Media (NSDQ: XFML) are up today on an announcement that investment group The Yucapia Cos. will take a stake in the company through an agreement to purchase shares from existing owners coming out of IPO lockup. Yucaipa, the investment vehicle of Ron Burkle, is likely to take an active role in the company’s operations, possibly helping the company look for future transactions. The announcement is also a positive, since it means fewer shares coming to market in the near term. The company has had a rough time of it since its IPO in March, with shares at one point dropping 50 percent off its highs. The company, and its American-born CEO Fredy Bush, were the subject of an investigative piece in the Wall Street Journal this summer, which looked at its rise and relationship to the Chinese government. It has revamped its governance policies in May after its CFO resigned. Terms of the investment were undisclosed. Release.
Update 1: WSJ reports that this move comes as parent Xinhua Finance Ltd. attempts to sell U.S. proxy-advisory firm Glass Lewis & Co…Xinhua Finance’s $45 million acquisition of Glass Lewis this year thrust the Chinese company into the spotlight when two Glass Lewis executives, including the former chief accountant of SEC, resigned after the takeover.