Shanda positions itself as a global force with new takeover deal
One of China’s leading online game companies will pay as much as $80 million to acquire the US-based online game distribution firm Mochi Media.
Shanda Games has a strong position in the online game space, having structured its business to have resources for game development, online maintenance, and publishing.
Its bid to acquire Mochi Media – which has been agreed but needs to be finalised – is clearly a move which positions Shanda on the global stage.
San Francisco based Mochi Media’s online game network currently has over 140 million monthly users playing through its 15,000 browser-based games. Mochi provides a range of monetisation solutions to developers, from distribution to advertising to microtransactions.
The $80 million buyout – expected to be approved in the first quarter of 2010 – is collected as $20 million of Shanda equity and $60 million cash.
“Mochi Media's impressive array of browser-based games is an ideal complement to Shanda Games' portfolio of nearly 70 multi-player online games,” said Shanda Games CEO Diana Li.
“With Shanda Games' ability to source robust content through multiple channels, and Mochi Media's reach to users, game developers and publishers worldwide, this transaction positions Shanda Games to become a truly global online game media platform,” she added.
Mochi Media CEO Jameson Hsu said the deal will “take Mochi Media to the next level.”