Taoping Inc. (NASDAQ: TAOP) disclosed that it has inked an agreement a share acquiring deal with Taoping New Media Co., Ltd. As per the deal, the firm will buy 100% equity holdings of Taoping New Media. It has been disclosed that after the execution of the deal, Taoping New Media will become a fully-owned unit of Biznest Internet Technology Co., Ltd.
The acquisition of Taoping New Media is an important step for the firm. The buying decision of Taoping New Media will allow the firm to set foot into a $25.5 billion out-of-home advertising market in China with end-to-end digital marketing solutions. This deal will also provide a profit for the shareholder.
Taoping New Media has gained recognition as a prominent media operator in China’s out-of-home digital advertising industry. It has bought smart display screens from TAOP since 2017 and established its digital advertising network created on TAOP’s cloud platform. Shares of Taoping Inc went up 5.66% at the time of writing on Friday.
After the purchase of Taoping New Media, Taoping New Media’s business is anticipated to be part of TAOP’s newly established Digital Culture Business Division, and TAOP will secure advertising revenue streams from the Taoping network.