A friend recently told me, Shanda, one of the leading online game company in China, is going to spin off another of its division and get it listed next year.  But, the person is not sure, which division is it.

Shanda listed its online game division, Shanda Game, in September 2009. My guess is: the next time it is going to list its e-book division.

After Shanda Game was listed, its share price kept dropping.  This is because Shanda still depends on its first 2 games (Mir 2 and WOOOL), launched 8-9 years ago, for most of its revenue and there is no major hit among all of its new games.  In other words, that business is dying.

On the other hand, I believe Shanda’s e-book business could be a winner if it is listed.

Shanda has the copyright of most of the e-books in China.  e-book download has already became very popular over the mobile phone.  And, with the popularity of iPad and iPad-like devices, more and more people start reading books on their handheld devices.  I believe Shanda’s e-book business will have a bright future.  Something worthwhile investing in.

Sherman So

Author of Red Wired: China's Internet Revolution, the first book to completely survey the nature of China's internet. (http://redwiredrevolution.com/) She previously was the lead China technology reporter...

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