Shanda Valued at US$2.3 billion After CEO Makes Buyback Offer

Shanda (NASDAQ:SNDA), a leading interactive entertainment media company in China, is now valued at a huge US$2.3 billion after its own CEO, Tianquao Chen made an offer to buy back stock at US$41.35 per share or 23% above Friday’s closing price. The stock last closed at US$41.28 on the NASDAQ.

Chen and his immediate family already control 68% of Shanda stock and are positioning themselves to take the company private. The parent company generated $264 million in revenue in its most recently reported fiscal quarter.

Shanda is known to be a very powerful player in China’s booming mobile and internet industry and has made bets on many different products.  They launched Tuita, a Tumblr-like light-blog   to compete with the variety of big-internet company Tumblr clones.  The company is also believed to be the first ever pay-as-you-grow cloud servers in China. There have also been rumours spreading that Shanda is gearing up to launch their own mobile phone.