China's Shanda to Spin-off Games Unit in Nasdaq IPO

Authored by Mark Hefflinger on September 4, 2009 - 5:27am.

Shanghai - China's Shanda Interactive Entertainment (NASD: SNDA) this week announced plans to spin-off its games unit with an initial public offering (IPO) on the Nasdaq. Reuters reports that the company aims to raise as much as $800 million in the offering, proceeds from which will be used to fund acquisitions and joint ventures, and for capital expenditures.

Shanda Games accounts for 95% of the company's overall revenue.

The unit operates a number of popular online multiplayer roleplaying and casual titles, which claim about 9.7 million paying customers.

Aside from games, Shanda Interactive also distributes a variety of cartoons, literature works and music.

Shanda's move follows the spin-off of fellow Chinese firm Sohu.com's gaming unit, Changyou.com, which raised $138 million in its IPO in April.

Related Links:
http://snipurl.com/rlt57

http://snipurl.com/rlt4t (Reuters)

http://www.snda.com

Published in DMW Daily, September 4, 2009

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Comments

why would a company spin out

Submitted by anonymous (not verified) on September 4, 2009 - 9:04am.

why would a company spin out 95% of its business... sounds like a scam to raise an extra $800m through typical Chinese shell game, facilitated by Goldman- who will do anything for fees. Shenanigans have been called!