Shanda Literature, the Internet literature subsidiary of Shanda Interactive Entertainment Limited, has acquired the Chinese Internet literature website Rongshu.com, with a shareholding ratio of over 51%.
Though Shanda Literature held a grand ceremony for the acquisition, Hou Xiaoqiang, CEO of Shanda Literature, told local media that this is not the most important or the most expensive acquisition for Shanda Literature. He refused to reveal the detailed transaction amount of this acquisition, but said Shanda Literature gained an over 51% stake in Rongshu.com with this move.
Hou added that after the acquisition, Shanda Literature will maintain its independent development and will implement more capital operations in the future. The possibility for an independent IPO cannot be ruled out.
Founded by William Zhu, Rongshu.com is one of the earliest Internet literature website in China with an operating history of 12 years. It was sold to Bertelsmann in 2002 for USD10 million and was re-sold to Joy Media in 2006 for USD5 million. Because of problems with its website domain name management, the website was not accessible for a long period of time. Apart from the continuous focus on Internet literature, the new Rongshu.com will reportedly become an independent copyright operating center.