Shanda Games, one of China's largest online gaming companies, has announced an $80m cash-and-stock deal to acquire US gaming firm Mochi Media.
Shanda hopes to leverage Mochi’s stable of browser-based games and extend them to Chinese and international audiences, giving it an edge in the competitive Chinese online games market.
San Francisco’s Mochi Media has produced 15,000 online games, the bulk of which are casual, browser-based Flash games that feature elements like leader boards, virtual goods and consumables and even virtual currencies to keep users coming back.
Shanda’s primary competitor in the Chinese market, Tencent Games, has overtaken Shanda in the last year or so, primarily through a large portfolio of browser-based games.
The acquisition highlights the growing financial might behind China’s burgeoning online entertainment industry and, according to market analysis firm iReach, the Chinese online gaming industry was worth around $4bn in 2009.
