Shanda (SNDA) has completed the cash purchase of 100% equity interest in Gametea, a leading online casual games platform that develops and operates chess and board games in China.
An upfront consideration was paid in cash at closing, with the remaining consideration to be paid in two installments in 2006 and 2007.
Founded in 1998, Gametea has 11.5 million registered users from 28 cities throughout China and offers more than 90 online casual games, including poker games, board games, mahjong and other contest games.
According to data provided by Gametea's management, it had over 1.5 million active users in November 2005 and its game platform recently attracted close to 90,000 peak concurrent users. Gametea generates revenue through the sales of virtual in-game items and advertisements on the game platform.
"Following the acquisition of Bianfeng, the addition of Gametea solidifies Shanda's leading position in Chinese casual games market. With approximately 500,000 peak concurrent users from both Bianfeng and Gametea, we have built one of the largest chess and board game platforms in China," commented Tianqiao Chen, CEO of Shanda, "We believe online game is a key application on our integrated interactive entertainment platform, and that this acquisition will further expand our user foundation and aid the implementation of our home strategy."