Shanda sells to diversify to new sectors
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E-mail Shanghai Daily, April 10, 2012
The Shanda Group will sell two game platform subsidiaries to a Zhejiang Province-based media group as the Shanghai-based online game giant seeks to adapt its business structure to new sectors like media and mobile.
The Zhejiang Daily Media Group will use "private placement or bank loans" to acquire Shanda's Bianfeng and Haofang, which provide players with games like poker and board game Sanguosha, the Shanghai-listed media group said yesterday in a statement.
The sale will help Shanda to diversify into the media and mobile segments to ease its dependence on the game sector, according to industry insiders.
Chen Tianqiao, Shanda's founder and chairman, previously said the company would expand into other sectors.
Zhuge Hui, Bianfeng's president, confirmed the deal but he declined to reveal more details such as the transaction value.
Bianfeng and Haofang, which were acquired by Shanda in 2004 for a total of US$80 million, now have more than 60 million users and are profitable, according to Shanda.
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