More signs of turbulence are coming from the troubled online game space, with word that the CEO of Shanda Games (Nasdaq: GAME) has resigned and Perfect World (Nasdaq: PWRD) has overhauled its R&D division to breathe new life into the company. There’s quite a lot of back story to these latest news bits, including a strategic equity alliance announced by the 2 companies at the start of the year that later fell apart for unexplained reasons. The bigger story is the fierce competition in China’s online game market, which has left companies like Shanda and Perfect World struggling to grow and has dampened investor enthusiasm for new gaming IPOs. Read Full Post…
Tag Archives: Perfect World
Feiyu IPO Fuels Gaming Migration To HK
Much of the world is fixated on the upcoming IPO of e-commerce giant Alibaba in New York, but a far smaller new listing plan by mobile game developer Feiyu Technology is shining a low-key spotlight on a recent jump for such listings in Hong Kong. Many have said that Hong Kong should be the most attractive offshore listing ground for Chinese venture-backed IPOs, since the former British colony is closer geographically and culturally than the currently favored site of New York. But strict listing rules on profitability and ownership structure have kept most Chinese venture-backed tech firms looking to New York instead. Read Full Post…
Shanda Games Buy-Out Unravels
Big privatization deals are never easy, as we’re seeing with signs that a buyout plan launched by the controlling shareholder of online game firm Shanda Games (Nasdaq: GAME) is rapidly unraveling. Shanda Games’ parent, Shanda Interactive, launched the plan back in January, as part of a broader wave of similar privatizations for undervalued US-listed Chinese companies. Shanda Interactive is saying the buyout is still alive, though other shareholders are clearly growing skeptical, based on Shanda Games latest stock price. Read Full Post…
Games: Alibaba’s New Tie-Up, Tencent’s Candy Crush
A year after entering the ultra-competitive online gaming market, e-commerce leader Alibaba is boosting its drive into the space through a major new tie-up with Kabam, a fast-growing American designer of free online games. The move looks squarely aimed at archrival and leading Chinese game operator Tencent (HKEx: 700), which has just made its own major advance in the space with the launch of an officially licensed version of the wildly popular “Candy Crush” game in China. Read Full Post…
Perfect World’s Shanda Buy: Consolidation Coming?
The online game industry has just gotten a small hint of potential consolidation, with word that mid-sized player Perfect World (Nasdaq: PWRD) is buying a stake of rival Shanda Games (Nasdaq: GAME), which is in the process of privatizing. The tie-up that will see Perfect World buy about 6 percent of Shanda Games’ shares comes as both companies confront sagging profits, and could kick off a period of consolidation for the highly fragmented industry. I’ve incorrectly predicted such consolidation before, but a recent wave of M&A in China’s Internet and other recent trends could mean that such an overhaul could finally be coming to online games. Read Full Post…
News Digest: April 22, 2014
The following press releases and media reports about Chinese companies were carried on April 22. To view a full article or story, click on the link next to the headline.
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- Alibaba Delays Initial F-1 IPO Filing – Source (Chinese article)
- Perfect World (Nasdaq: PWRD) To Buy Shanda Games (Nasdaq: GAME) Stake (PRNewswire)
- China Shoe Strike Spreads, Enters Second Week (English article)
- Tesla (Nasdaq: TSLA), JA Solar (Nasdaq: JASO) To Build Charging Stations In Pudong (Chinese article)
- Fosun Pharma Boosts Offer for Chindex (Nasdaq: CHDX) After Rival Bid (English article)
- Latest calendar for Q1 earnings reports (Earnings calendar)
Giant Buy-Out: Paving Way For A Real Gaming Giant?
The ongoing cleanup of neglected Chinese firms from US stock exchanges continues, with word that online game developer Giant Interactive (NYSE: GA) has finalized its plan to go private. A report on the bid says that several other Chinese online game firms are also planning privatizations, as former industry leader Shanda Games (Nasdaq: GAME) is also in the midst of its own such bid. It’s not hard to see why these companies are going private, as their shares have gone nowhere for years due to anemic growth. But what’s interesting here is the prospect that some of the private equity firms funding this wave of buy-outs could finally force a few of these companies to merge and create a more vibrant major new player with real growth potential. Read Full Post…
News Digest: December 28-30, 2013
The following press releases and media reports about Chinese companies were carried on December 28-30. To view a full article or story, click on the link next to the headline.
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- China’s 4G Users To Reach 30 Mln in 2014 – Regulator (Chinese article)
- Perfect World (Nasdaq: PWRD) Sells Chinese Online Reading Unit To Baidu (Nasdaq: BIDU) (PRNewswire)
- Oceanwide Real Estate (Shenzhen: 000046) To Spend $200 Mln On First US Project (Chinese article)
- GM (NYSE: GM) Recalls 1.5 Mln Cars In China Over Fuel Pump Bracket (English article)
- Baidu’s (Nasdaq: BIDU) iQiyi Names CFO As IPO Nears – Report (Chinese article)
IPOs: Cinda Hot, Perfect World Not, Alibaba In London
In an unusual day for overseas traded Chinese firms, we’re getting interesting listing news bits from 3 of the world’s top financial markets, with companies making headlines in New York, London and Hong Kong. In New York, we’re hearing that unappreciated online game operator Perfect World (Nasdaq: PWRD) may be considering a privatization bid; in Hong Kong, Cinda, a manager of non-performing state-run assets, is getting a strong reception in the run-up to its large IPO; and last but not least, visiting British Prime Minister David Cameron has made a person appeal to e-commerce giant Alibaba to make its highly anticipated IPO in London. Read Full Post…
Giant To Privatize, Other Gamers To Follow?
Neglected online game operator Giant Interactive (NYSE: GA) has become the latest Chinese tech firm to launch a privatization bid, leading some to wonder whether other companies in the competitive gaming space may follow. I personally believe that Giant represents a special case, as the company was the source of controversy due to some questionable investments at the height of a recent confidence crisis against US-listed Chinese firms. But that said, China’s massive online gaming sector has become quite overheated over the last few years, with the result that many former high-flyers have seen their sales and stock prices languish. Read Full Post…
Baidu Buys Into Literarture, Sohu To SNS
Internet stalwarts Baidu (Nasdaq: BIDU) and Sohu (Nasdaq: SOHU) are back in the M&A headlines with news of relatively small acquisitions, indicating the market may be running out of big targets as we prepare to end a landmark year for major deals in China. I’ve been reporting on Chinese Internet companies for more than a decade, and during most of that time would be lucky to see 1 or 2 major acquisitions or equity tie-ups in any single year. But all that changed this year, with top Internet names like Baidu, Alibaba and Tencent (HKEx: 700) emerging as major buyers in a series of deals collectively valued at billions of dollars. Read Full Post…
