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Big changes expected for China's Internet industry
www.chinanews.cn 2005-02-23 14:32:39
Chinanews, Feb. 22 (By Liu Yuying) - After its share purchase of Sina,
the combined Shanda Interactive Entertainment Limited would become
China's Internet superpower, indicating big changes in China's Internet
industry and an era of "Warring States Period".
Goldman Sachs Group, a renowned research institution, has predicted in
its report that the combination of Shanda and Sina would generate 470
million US dollars of revenue in 2005, 53% of which comes from Shanda,
47% from Sina, as well as 167 million US dollars of net profit. The total
market value of the two would be 4.2 billion US dollars, by far the
largest among China's Internet businesses.
The alliance of Sina and Shanda will create an online superpower with
integrated content, messaging, online advertisement, E-business and
online game services. It is going to be a formidable foe for any other
players in the industry.
According to an Internet industry veteran, the industry will enter a new
era of restructuring. With the emergence of superpowers, other companies
will have to conduct horizontal or vertical integration to compete with
them. However, Goldman Sachs believes that Sohu.com Inc., Tencent Inc and
NetEase Inc. were comparatively tightly held and are less likely to be
acquisition targets.
��SNDA acquired 19.50f Sina (2005-02-21)
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