While some studios are trying to launch an IPO, others are attracting private capital. Shanda Games (whose shares are listed on NASDAQ) has announced an offer to transform into a closed company.
As part of the deal, Shanda Games was valued at $1.9 billion. The initiator of the proposal was the main shareholder of the company – Shanda Interactive Entertainment. The money is offered by a branch of Primavera Capital, a Chinese investment fund. Within the framework of the proposed two billion, debts are taken into account.
Both companies already own a 72.6% stake in Shanda Games. Experts believe that the transition will definitely happen, despite the fact that no final decision has been made on this issue. An estimate of $1.9 billion gives 21% more than the current market value of the company.
According to a recent quarterly report by Shanda, the company earned about $183 million, which is 3% more than a year ago. The company achieved the greatest success in the mobile market, where it increased profits by 50%.