Jan. 27, 2014, 10:00 AM
- Shanda Games (GAME +10.8%) has received a non-binding going-private proposal letter from parent Shanda Interactive and an affiliate of Chinese investment firm Primavera Capital. The offer, meant to be financed through a combo of equity and debt, values Shanda Games at $1.9B, or $6.90/share. (PR)
- Shanda's board is evaluating the offer; the would-be acquirers already own 76.2% of the company.
- Though up sharply, shares still trade 9% below the offer price, which suggests a fair amount of investor skepticism exists. Peer Giant Interactive (GA +1.1%) received a going private offer in November. Giant's shares still trade 7% below their offer price.
Dec. 10, 2013, 1:41 PM
Nov. 25, 2013, 11:13 AM
- Giant Interactive (GA +11.5%) founder/chairman Yuzhu Shi and P-E firm Baring Private Equity Asia have offered, through a preliminary non-binding proposal letter, to take the Chinese online game developer private for $11.75/share, or $2.8B. (PR)
- The price represents a 16% premium to Giant's Friday close, and a 4% premium to where shares currently trade. Shi and Baring collectively own 47.2% of Giant.
- Shi is far from the first founder of a Chinese tech company to make a going-private offer. His proposal values Giant at a little over 9x 2014E EPS after backing out $610M in cash/investments.
Jul. 29, 2013, 12:35 PM
- Shanda (GAME) is nosediving as investors balk at the price it's paying to acquire affiliates responsible for handling its online game billing and customer service work, among other activities.
- One of the affiliates (Shengzhan) owns valuable data about user activity. The other (Shengjiang) runs a network that sells 2M+ real/virtual prepaid gaming cards via 180K distribution channels.
- Shanda claims service fees paid to the affiliates made up 21.3% of its Q1 revenue, and that buying the companies will help it deliver the kind of integrated platform it considers crucial for mobile success.
- Shanda is paying for the deals with cash, deferred payments, and the settlement of an outstanding loan receivable.
- Shares had more than doubled since early May before today's plunge.
- Fellow online game providers NetEase (NTES -2.6%), Qihoo (QIHU -4.1%), Perfect World (PWRD -5.3%), and Giant Interactive (GA -5%) are selling off. Sohu and subsidiary Changyou's disappointing Q2 results and Q3 guidance are the main trigger, though a moderate selloff in Shanghai isn't helping either.
Jul. 29, 2013, 8:31 AM
- Shanda Games (GAME) -7% premarket after agreeing to acquire affiliates providing user and payment platform services from its parent company Shanda Interactive Entertainment for a combined $811.5M.
- GAME says the moves will strengthen its mobile strategy.
- Other players in Chinese gaming: SOHU, RENN, NTES, PWRD, GA.
Giant Interactive Group Inc is engaged in the development and operation of online games in the People's Republic of China. The Company operates Multiplayer Online Role-Playing Games under a free-to-play model.
Industry: Multimedia & Graphics Software
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