What can the "inside Business" bring to Shanda?

In the new year, the Hurun List ranked 34th in the Grand Network chairman Chen, has again picked "China's richest man," the title of the opportunity.　　September 25, in addition to the original Royal network, Shanda games were also spun out, alone in the United States Nasdaq listing. "Chen has always had this idea. "2004 led the Grand network first into the Nasdaq's former Grand President Tang June, said to business weekly."　　In his view, the spin-off plan will greatly enhance the grand overall strategic layout, so that Shanda has a more long-term development ideas; Grand into the diversified development, through the dismantling of the listing and other ways to the management of the enterprise continuously subdivided, but also conducive to the enterprise to do a strong bigger. Since April this year Sohu will be the game business "swim" separate listing began, Internet enterprises "internal entrepreneurship" and "holding platform" trend is more and more obvious. Entrepreneurship, is a new business in the company's independent existence and growth, once grown into a separate listing. This is the list of Shanda games. The holding platform is more, the typical representative is Alibaba, currently Alibaba Group below has Taobao, Alipay, Ali Software and has realized listed Alibaba business-to-business companies and other subsidiaries. "The difference is that the Alibaba Group as a holding platform does not operate the actual business, but the company's headquarters, such as Shanda, Sohu, operates a variety of businesses." Senior Internet analyst Bo told Business Week, "The future of Shanda is expected to become a holding company like Alibaba." "In exploring the future direction of development, Shanda is not smooth sailing." At the end of 2004, Chen the "Digital Home Entertainment" strategy, which is to expand content from games to entertainment and information, and through "grand box", let these digital entertainment content from computer to television. To implement the strategy, in February 2005, Shanda publicly acquired a 19.5% stake in Sina, which was designed to implant digital entertainment, such as news, online games and casual games, into the digital home. But Sina's swift launch of the "Poison pill" (shareholder plan) has largely stifled attempts to rein in Sina. At the same time, spending huge sums of money to build the "grand box" has also been the market cold shoulder. Since then, through agents and acquisitions, Shanda networks have strengthened gaming and literary business. July 2008, Shanda Literature Co., Ltd. was formally established.　　As a grand network of one of the major enterprises, Shanda literature and Shanda Games Limited, Shanda Online Co., Ltd. together, embarked on a group development track, continue to interactive entertainment media strategic goals. The Grand game sold 83.5 million shares of the United States Depository Receipts (ADR) at a price of $12.5 per share, meaning that Shanda's financing amounted to $1.04 billion, the largest IPO in the United States this year, and the biggest financing scale for Nasdaq-listed companies in China. By listing, Shanda games raise large sums of money to prepare for the next development. Thus, the Grand Group development and deployment more clear, and will focus more on building "Web Disney." In addition, the grand split gameThe significance of listing is also to motivate the team through the form of equity and options in the IPO process. "Professional managers want their value to be better reflected, whether it comes from more equity incentives or more power after an independent listing," said Wenrui, a senior analyst at the study of "Business Week". "Although the game is still the grand most important business, but Shanda's online sector, Shanda literature and so are also growing well." Shanda Network this year two quarterly earnings show, in addition to the game business, Shanda Other revenue rose 33%, up 76% year-on-year, this part of the revenue mainly from Shanda literature. "The Grand spin-off game is also to create conditions for other business listings." Bo said, "Although the overall capital market situation is not good, but the successful listing of Sohu Tour and Shanda games will inspire domestic internet companies." "Apart from the desire of the company, the" split-listing "business model has been widely welcomed by foreign investors. Industry insiders pointed out that, in general, can practice "split listing" mode are integrated companies, they often operate a diversified business, a variety of business with relative independence. If multiple businesses are mixed together, investors need to assess the value of a variety of businesses and split them up, and investors ' goals will be clearer. Of course, this model is not perfect. As an independent entity, a listed subsidiary must meet the requirements of investors, and correspondingly weaken the association with other business of the group. But easy to fly who think, swim and grand game performance stable. "From the present point of view, the spin-off is still a money-making model." "he said.