Taiwan-based game manufacturer Softstar Entertainment has held a shareholder meeting to discuss the scale and targets for its private placement plan and the Chinese online game operator 9you.com is one of the candidates.
According to Singapore media reports, Softstar will reportedly finance about NTD100 million to NTD150 million and its new shareholder may hold a stake between 10% and 20% in the company.
The board of directors of Softstar approved a private placement plan in mid-2008 and said that the company would finance no more than NTD300 million. This will therefore be the second private placement plan of Softstar since it gained investment from KBTelecom in 2007.
As an old brand in Taiwan's game industry, Softstar has produced many popular stand-alone games like Rich, Chinese Paladin and Xuanyuan Sword. However, with the rise of online games, Softstar has hit a bottleneck in the development of its self-developed games. Softstar has therefore quickened its steps in private placement and the company will soon launch its new online game Chinese Paladin Online. The new game will enter markets of both the Chinese mainland and Taiwan in the first quarter of 2009.
9you.com is one of the many Chinese game agencies and operators running on the mainland. The company bought the rights of Chinese Paladin Online on Chinese mainland for over NTD100 million one year ago.
A spokesperson from Softstar says the targets of Softstar's private placement have been limited to two to three companies and the company hopes to choose a partner that can assist Softstar's future development on the Chinese mainland and overseas markets.