US law firm investigates a takeover deal announced recently by Shanda Games

Source: Internet
Author: User
Keywords Grand games investigating
Tags check company game games network total total amount view

Summary: Check the latest quotes Beijing time August 15 Evening News, the U.S. law firm Gilman Law, LLP Securities lawyers are the Grand Game (Nasdaq:game) recently announced a merger investigation. Grand Game July 29 with its parent company Royal Network signed

View the latest quotes

Beijing time August 15 Evening News, the United States law firm Gilman Law, LLP Securities lawyers are in the Grand Game (Nasdaq:game) announced a recent acquisition of a deal launched an investigation.

Shanda Game July 29 with its parent company Grand Network signed a final agreement, from the latter hand to buy Shanghai Sheng Exhibition Network technology company and Tianjin Shengjing Trading Co., Ltd., the total amount of 811.5 million U.S. dollars.

Sheng Exhibition has a grand pass database, containing account information, including registration, payment and user access to the Royal Network operation of the game to use other user behavior data. And Shengjing has about 180,000 point card distribution channels nationwide, the average monthly sales of 2 million entities and virtual point cards.

For the deal, the Shanda Games Special Committee has hired outside law firms and finance companies to assess and get approval from the board of Shanda Games. The deal is expected to be completed in the third quarter of 2013.

The total amount of the transaction is 811.5 million U.S. dollars, will be through cash, deferred payment and from the Royal Network of receivables completed. As of March 31, 2013, the total amount of cash, cash equivalents, short-term investments, restricted-use cash, net loans and payable dividends held by Shanda Games amounted to USD 556 million.

The company's share price has plunged since Shanda's announcement of the deal. The fall in share prices can be a combination of factors, such as the market's belief that the deal is priced unreasonably, or that it is a signal that Shanda's position poses a risk to shareholders ' interests.

Previously, the Motley fool, the US financial site, had said the key issue of Shanda's game was whether the money was too high. In the past three years, Shanda's revenue has failed to grow, but it has bought two companies with more than half of its estimated 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. (Li Ming)

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