Chinese Internet firm Shanda Interactive (NASDAQ:SNDA) may be on the road to becoming a private company after its chief executive and top shareholder, Tianqiao Chen submitted a cash offer of approximately $2.33 billion to the company.
Chen, his wife, non-executive director Qianqian Luo and Chief Operating Officer Danian Chen are the proposed buyers. As of September 30, they controlled approximately 68 percent of the company without options.
The group has met with JP Morgan for financing the transaction and as a potential financial advisor. According to Shanda (NASDAQ:SNDA) it received a “highly confident” letter.
Shanda (NASDAQ:SNDA) has been interested in expanding past gaming and becoming an entertainment company. By going private, this may present an opportunity for it to do so.
Shanda’s (NASDAQ:SNDA) stock is up 17.20% to $39.24 on the news. Shares are down 1.29% year to date. The stock has traded in a 52-week range between $28.44 and $54.20.
Keep your eye on other Chinese internet stocks as the space gathers more attention: Baidu(NASDAQ:BIDU), Sina (NASDAQ:SINA), Youku.com (NYSE:YOKU), Netease.com (NASDAQ:NTES), Dangdang Inc. (NYSE:DANG), and RenRen (NYSE:RENN).