National Business Daily, 5/17/11
Recent industry rumors hold that Shanghai Media Group (SMG) has begun its initial foray into the browser game market. The main subject of the rumors has been Shanghai Dashijie Investment Management, a subsidiary of SMG parent company Shanghai Media & Entertainment Group (SMEG).
A source inside Shanghai-based online game developer and operator Giant Interactive (NYSE: GA) said that Dashijie had acquired a stake in Shanghai Haoji Network Technology, a Giant subsidiary focused on browser game development and operation. Haoji's main product at present is the browser game Rongrong Dazhan.
Giant declined to reveal current details of Haoji stock ownership, but said that Giant Interactive remained the majority shareholder, with Dashijie holding the second-largest stake and Haoji management holding the remaining shares.
Editor's Note: For more background on this topic, please see "Rumor: SMG to Produce Online Games" MD 5/09/11 issue.