Shanda Games offered to become a closed company
While some studios are trying to launch an IPO, others are attracting private capital. Shanda Games (whose shares are listed on NASDAQ) has announced an offer to transform into a closed company.
As part of the deal, Shanda Games was valued at $1.9 billion. The initiator of the proposal was the main shareholder of the company – Shanda Interactive Entertainment. The money is offered by a branch of Primavera Capital, a Chinese investment fund. Within the framework of the proposed two billion, debts are taken into account.
Both companies already own a 72.6% stake in Shanda Games. Experts believe that the transition will definitely happen, despite the fact that no final decision has been made on this issue. An estimate of $1.9 billion gives 21% more than the current market value of the company.
According to a recent quarterly report by Shanda, the company earned about $183 million, which is 3% more than a year ago. The company achieved the greatest success in the mobile market, where it increased profits by 50%.
