Japanese ad agency Dentsu and Shanghai-based marketing company Focus Media (NSDQ: FMCN) have agreed to establish a new interactive ad firm. Dentsu, like a lot of others these days, wants to expand its reach into the growing Chinese market. The new entity, which has not been given a name yet, is starting off with $9 million in capital, according to Reuters. The company should open its doors by March and Dentsu expects it to bring in $47 million in revenue within its first year. Release.

Dentsu, which will integrate its existing interactive Chinese companies within the new venture later this year, will hold a 67 percent stake and Focus Media will have the remainder. A Dentsu rep told Reuters that the two joined forces to combat the competitive threat from “Western mega-advertising agencies like the WPP Group.”

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