According to an industry source, Chinese internet and mobile services firm Tencent (0700.HK) plans to pay USD 1 bln to acquire online gaming information portal 17173.com. Upon completion of the transaction, Tencent will reportedly merge its gaming channel resources with 17173.com and adjust personnel.
57.1% of Tencent's operating revenue currently comes from online gaming. Thus, 17173.com's high traffic, superior brand, and low cost advertising make the portal an attractive acquisition target for Tencent, which will also gain an online community and content services from the deal.
Editor's Note: Earlier this month, Zhao Jia, GM of Changyou's 17173 business confirmed that Changyou had sold the gaming information portal, but did not reveal the identity of the buyer. For more information on this topic, please see "Changyou Confirms Sale of '17173' Game Information Portal," MD 1/08/15 issue.