Shanda Announces Acquisition of Rongshuxia
Sohu IT, 12/24/09
Shanda Interactive Entertainment (Nasdaq: SNDA) subsidiary Shanda Literature has officially announced the acquisition of online literature site Rongshuxia. Dong Zhaohui, of Rongshuxia operator Joy Media, has revealed that Shanda will own 51% of the new Rongshuxia, with Joy Media retaining 49%. However, he did not reveal the exact amount paid by Shanda for its majority share. Dong did say, however, that Shanda and Joy Media would continue investing in Rongshuxia over the next three years.
Zhou Hongli, Shanda Literature's chief copyright officer, will become Rongshuxia's chairman, and Zhang Enchao, chief editor at Shanda Literature's literature department, will become the company's general manager.
Editor's Note: Zhang Enchao said that Rongshuxia would develop towards online music and video in the future. Shanda Literature CEO Hou Xiaoqiang said that Shanda Literature would continue to develop independently, and that the company may spin off for a public listing in the future. For more background on this topic, please see "Rumor: Shanda Literature Acquires Stake in Rongshuxia" MD 12/23/09 issue.
Keywords: Dong Zhaohui HR Shanda Zhang Enchao Zhou Hongli Internet online literature Rongshuxia Shanda Literature SNDA Joy Media M&A online video online music IPO Hou Xiaoqiang
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