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Shanda Games' US acquisition bolsters outlook

Published 13 Jan 2010

Shanda's acquisition will help it diversify away from the highly competitive domestic online games market and could mark the first of many Chinese investments overseas this year.

News of Shanda Games' (GAME:Nasdaq) announcement to acquire Mochi Media, a US-based online games distributor, for $80m is set to boost the company's prospects as it diversifies away from reliance on the highly competitive domestic market. We also expect this to be the first of many Chinese investments overseas this year as companies work to climb the technology ladder and build distribution networks overseas (CC 23 Dec 2009).