Shi Yuzhu plan throws 500 million dollars to purchase long tour

Xinhua News (reporter Peng) yesterday reporter learned from the people who know, Shi Yuzhu's giant network is ready to purchase a domestic network game operators at a high price of 500 million of dollars, the transaction has entered into the details of the negotiation level.

"I do not know exactly which business, but the Chinese circle is so big, can be worth the price of the company you count the number of which are." "The giant will become China's largest online gaming service provider after the merger is completed," said the person familiar with the matter. ”

At present, China's online gaming industry, the value of about 500 million U.S. dollars of operators are rare, and most of them have been completed independently listed. From this background, the former Korean developers T3 because of the lawsuit and forced to terminate the Japanese listing of the long tour company is most likely to become the giant company boss Shi Yuzhu's "prey."

"Although the long tour now has a monthly cash flow of nearly 50 million yuan, but because the IPO has been indefinitely delayed, the rush to withdraw the venture capital for such mergers and acquisitions will be very interested." "Venture capitalists have their own rules of the game and need to opt out when the time is right," said a senior competitor at the top of a rival company yesterday. If Shi Yuzhu really made this deal, then to the giant change their product line is too single, risk-resistant weak status quo will help. ”

Giant company officials said yesterday that "there is no such thing", while the long tour did not respond. However, Shi Yuzhu recently announced the acquisition of 51.com News, once admitted that China's online gaming industry today, large-scale mergers and acquisitions "will inevitably happen."

The company has a total cash and cash equivalents of 5.835 billion yuan (832.1 million US dollars at the current exchange rate) as of March 31, 2008, according to earnings figures released May 16 this year by the Giants network. Previously, the Giants had also bought up 200 million of billions of shares in the open market. In the second quarter of 2008, total revenues were between 495 million and 505 million yuan, in earnings forecasts released over the same period. As a result of online gaming companies generally take the prepaid model, this income has actually entered the giant account. From this calculation, conservative estimates, the giant currently has a cash reserve will be more than 6.2 billion yuan.