Shanda Games, Kingsoft game to launch JV
Shanghai. December 28. INTERFAX-CHINA - Nasdaq-listed Shanda Games Ltd., Shanda Interactive Entertainment Ltd.'s online game unit, and Kingsoft Corp. Ltd. plan to launch a joint venture focused on online gaming, the two companies announced on Dec. 28.
Shanda Games and Kingsoft will use the joint venture to cooperate on the research and development and operation of online games. The two parties will also explore overseas online gaming markets, according to the announcement. Neither company disclosed the name or shareholder structure of the planned joint venture.
Shanda Games and Kingsoft started their partnership at the beginning of the year, when Kingsoft moved three of its flagship games onto Shanda Game's operating platform, according to past company announcements.
In the third quarter of 2009, Shanda Games generated total revenue of RMB 1.27 billion ($186.3 million), up 45 percent year-on-year, while Kingsoft's online game business generated total revenue of RMB 162.8 million ($23.83 million), up 9 percent year-on-year.
The latest statistics from the market research firm iResearch show that Shanda Games held an 18.1 percent share by revenue of China's online gaming market, ranking it second among Chinese game companies, while Kingsoft had a 2.7 percent market share, ranking it ninth.