PR Newswire 28 July 2013
Shanda Games Limited, a leading online game developer, operator and publisher in China, announced today that it has entered into definitive agreements to acquire affiliates providing user and payment platform services from its parent company Shanda Interactive Entertainment Limited.
The Company expects to achieve the following through this transaction:
- Facilitate the establishment of the Company’s mobile platform
- Improve the Company’s cost structure and earnings per share
- Improve the Company’s use of cash
- Eliminate recurring related-party transactions and settle related-party loans
Shanghai Shengzhan Networking Technology Co., Ltd. (“Shengzhan”) and Tianjin Shengjing Trade Co., Ltd. (“Shengjing”) are both entities under the common control of Shanda Interactive. Shanda Games pays service fees to both companies for services including online billing, user authentication, customer service, anti-fatigue compliance, data support services, and prepaid card marketing and distribution. In the first quarter of 2013, service fees paid to Shengzhan and Shengjing represented approximately 21.3% of Shanda Games’ total net revenues.