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.

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