Shanda Game buys two of parent company's shares tumbled 20%

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Beijing time July 30 morning news, according to the U.S. investment website The Motley Fool reported that Shanda game (Nasdaq:game) announced in Monday, will be from the parent company Shanda Network to provide its user payment platform services two subsidiaries. The announcement followed a big 20% plunge in the regular trading of the US Nasdaq market today.

The total amount of the acquisition reached 811.5 million U.S. dollars, Shanda game Management said, after the acquisition of the two companies, Shanda game future costs and revenue will be reduced and increased by 40% to 50%.

The Motley fool says the key question now is whether Shanda's acquisition is too high. In the past three years, Shanda's revenue has failed to grow, but now it has bought two companies in excess of its own estimate of half the cash, and Shanda must borrow heavily to complete the acquisition. The Motley fool that in the long run, the acquisition does not help to achieve growth in Shanda games. (Chen)