News

Shanda Games receives $1.9 billion offer to take it private

Shanda Games receives $1.9 billion offer to take it private

While some game companies are rushing to IPO, others are going the other way.

NASDAQ-floated Shanda Games (NASDAQ: GAME) has announced that it's received a proposal to take it private.

Significantly, the deal which values the online/mobile game developer and publisher at $1.9 billion, has been tabled by its controlling shareholder, parent company Shanda Interactive Entertainment.

The money is being provided by an affiliate of Primavera Capital, a Chinese investment outfit, combined with third-party debt.

Done deal

Between them, the two companies already own 72.6 percent of Shanda Games shares, meaning the takeover is likely to happen although the company says it has not made any decision yet.

As for the $1.9 billion valuation, it's a premium of 21 percent to its share price on 24 January.

Shanda recently posted quarterly figures of $183 million, up 3 percent year-on-year, but its mobile sales are booming, They were up 50 percent at $25 million.


Contributing Editor

A Pocket Gamer co-founder, Jon is Contributing Editor at PG.biz which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.

Comments

No comments
View options
  • Order by latest to oldest
  • Order by oldest to latest
  • Show all replies
Important information

This site uses cookies to store information on your computer. By continuing to use our site, you consent to Steel Media's privacy policy.

Steel Media websites use two types of cookie: (1) those that enable the site to function and perform as required; and (2) analytical cookies which anonymously track visitors only while using the site. If you are not happy with this use of these cookies please review our Privacy Policy to learn how they can be disabled. By disabling cookies some features of the site will not work.