Local media report that at the same time as Shanda (SNDA) has suffered a large deficit from its online games, it is going to enter the mobile phone industry by cooperating with international mobile phone giant Motorola (MOT).

The two sides may arrange a joint venture company to make mobile phones featuring both of their brands.

Shanda has not confirmed the news, but a representative from its PR Department says that if Shanda takes up the mobile phone business, it will focus on content instead of hardware.

However, news reports disclose that if a deal goes through, Shanda's subsidiary Beijing Wuweihong Company will be in charge of the cooperation with Motorola. According to Wu Gang, general manager of Beijing Wuweihong Company, his company will work with Motorola to move Shanda's games to mobile phones.