Shanda Games continues free fall after acquisition of affiliates

Aug. 07, 2013 12:28 PM ETShanda Games Ltd (GAME-OLD)GAME-OLDBy: 2, SA News Editor
  • Shanda Games (GAME -5%) continues to bleed with no signs of triage, after the market balked at the company's announcement it will pony up $811M to its parent, Shanda Interactive, to purchase affiliates responsible for its online game billing and customer service operations.
  • With the stock having plummeted 37% since the announcement, it appears the market isn't just viewing the deal as a poorly-priced transaction, but is also seeing it as evidence of the risks posed by Shanda Games' unique and not-so-independent ownership structure to shareholder interests. Shanda Games is a unit of Shanda Interactive.

Recommended For You

Comments

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.