Ourpalm Reportedly Acquiring Game Developer Playcrab for 2 Billion Yuan

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Ourpalm (SZ:300315), China’s first listed gaming company, reportedly planned to acquire a game developer Playcrab for 2 billion yuan (about $325 million) (source in Chinese).

The annual profits of Big Head, a Kung Fu mobile game developed by Playcrab, amounted to around 100 million yuan. Ninja, a strategic mobile game developed by the company this April, is well received by gamers.

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Trading in the Ourpalm shares were suspended from July 17 for major assets restructuring. The company’s net profit is expected to reach between 44.68 million yuan and 51.06 million yuan in the first half of 2013, up 40 percent to 60 percent YOY, according to the fiscal report released by the firm.

This move comes on heel of Ourpalm’s acquisition of another game company Dovo Technology Inc. with 810 million yuan at early July.

Ourpalm shares surged more than 300 percent on aggregate this year, leading the gains in the game sector. Shares related to the mobile game concept, such as Zhejiang Daily Media Group (SH:600633) and Zhongqingbao Interaction Network (SZ:300052), soared in the recent two months, bucking the downtrend of the lackluster A-share market.

A plenty of acquisitions happened in the gaming industry recently. In addition, Huayi Brothers (SZ:300027), one of the leading film production companies in China, confirmed that it would acquire Yinhang Technology, a game company.