One of China's biggest online game companies goes private in $3B deal
Giant Interactive, a major Shanghai, China-based online game operator, has completed a deal to go private thatís worth $3 billion.
The company is behind games including the ZT Online
series and World of Xianxia
, which help place Giant as one of the leading online game companies in China, in terms of market share.
Giant generates revenue through the sale of virtual items in its online games. Game companies large and small see significant potential in China's emerging economy.
Giant Interactive went private by merging with the entity Giant Merger Limited, which is wholly-owned by Giant Interactive. Shareholders, who received $12 per share, approved the deal on July 14.
The company had been listed on the New York Stock Exchange under the ticker ďGA,Ē and was delisted Friday on Giantís request, following completion of the deal.
Public companies sometimes go private
in a bid to bring greater management focus to growing the company, as opposed to concentrating on government regulations.
In its most recent financial quarter, ended March 31 this year, Giant reported net revenues of $92.5 million, flat year-over-year. Profits were $194 million for the quarter, up 270 percent.