Cisco Systems (ticker: CSCO) reported through a Schedule 13G filing with the SEC yesterday that it owns 13,855,499 ordinary shares or 9.7% of Shanda Interactive (ticker: SNDA). The purchase price was not disclosed. You can access the filing here.
JPMorgan analyst Dick Wei said the share purchases occurred last year and included Cisco's acquisition of 6.93 million Shanda shares from Japan's Softbank.
Wei has an "underweight" rating on Shanda, citing declining revenue from its core online games business as it introduces a new free-to-play model, and uncertainty surrounding its new media initiatives.
Comment: Any thoughts on this move?
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