Orbis, the long-established fund bought 1.875% of Shanda Literature (or Cloundary) for US$ 15 million from Shanda Investment Holdings Ltd, as Shanda’s latest F-1 filing with SEC shows, the deal valued Shanda Literature at US$ 800 million.
Shanda made a profit for the first time in the first quarter of this year, with a net income of RMB 3.06 million on revenue of RMB 191 million.
It started planning an IPO last year, while the slump in capital market put many companies’s IPO on hold. Some of those companies, including Shanda Literature and 360buy, postponed their offering waiting for the market condition to turn to the rosy side. Shanda targeted getting listed on NYSE.
Shanda Literature to date accounted for more than 72.1% of Chinese online literature market by sales, the company has cemented its position in the market through a series of acquisition.
In addition to Shanda Literature, Orbis also invests into Sohu and NetEase, two portal sites in China.
screenshot of Shanda Literature Homepage