Citing unnamed sources, various Chinese media are reporting that Chinese online game operator Shanda Interactive Entertainment Limited will announce the acquisition of video website Ku6.com this weekend during the company's tenth anniversary.
The news has reportedly been confirmed by the two parties. A medium-level executive from Ku6.com told local media that Li Shanyou, founder and CEO of Ku6.com, said during an internal meeting that the company will have a larger budget in 2010.
As one of the largest video websites in China, Ku6.com, with its good user experience and unique video marketing ideas, gained some of the most advertising income among Chinese video websites for three consecutive years.
Founded in November 1999, Shanda Interactive Entertainment Limited entered the Chinese online game market in September 2001 and now is one of the largest online game operators in China. Shanda's financial report for the second quarter of 2009 ended June 30 showed that its net revenue increased by 11.8% quarter-over-quarter; and its operating profit increased by 12.7% quarter-over-quarter. In addition, during the first half of 2009, Shanda's net revenue increased by 44.9% year-on-year to CNY2.344 billion; and its operating profit increased by 49.6% year-on-year to CNY969 million. The company will publish its third quarter financial report on December 2, 2009.