Chinese online games company Shanda Games Limited announced it's picking up San Francisco-based Flash game ad network and payments platform Mochi Media for $60 million in cash and $20 million in equity.
With the purchase, Shanda plans to combine its online game content with Mochi Media's distribution platform to create a global online game media platform. "Shanda Games is the perfect partner to help take Mochi Media to the next level," says Mochi Media co-founder and CEO Jameson Hsu.
Founded in 2005, Mochi Media's online game network of 15,000 browser-based titles reaches more than 140 million monthly active users on nearly 40,000 publisher sites. The company's platform offers game development products and services that help developers track usage analytics, distribute their games to websites, and monetize their releases through in-game advertising and microtransactions.
Adds Hsu: "Mochi Media has created a successful distribution and monetization platform, tying together a vast network of developers, publishers, advertisers and players. The additions of Shanda Games' extensive content catalog and proven monetization capabilities unlock tremendous value on our platform for everyone involved."
Shanda's CEO Diana Li noted that this acquisition, which is expected to close in the first quarter of 2010, is the company's largest,
according to a report from Reuters. The purchase was financed by the proceeds from its
$1.04 Billion IPO last September and cash funds reserved for such deals.
The announcement comes several days after the Shanghai-based company revealed its
acquisition of Chinese developer Goldcool Games along with several other key deals. Shanda's current catalog of MMORPGs it's operating in China include
MapleStory, Dungeons & Dragons Online, The Legend of Mir II, Ragnarok Online, Aion, and many others.
"Mochi Media's impressive array of browser-based games is an ideal complement to Shanda Games' portfolio of nearly 70 multi-player online games," comments Shanda's Li. "With Shanda Games' ability to source robust content through multiple channels, and Mochi Media's reach to users, game developers and publishers worldwide through its leading innovative platform, this transaction positions Shanda Games to become a truly global online game media platform. We look forward to devoting our energy and focus to the integration process."
