[photopress:StoneAge2.jpg,full,alignright]CDC Corp, majority owner of China.com Inc, will reorganize to separate the games division from the Website operator at a cost of $110 million. The games group will then be a unit of CDC instead of China.com.
China.com, 77 percent owned by CDC, will be paid $50 million in cash and a $60 million five percent note maturing in 18 months. The company will pay another $25 million to China.com if certain conditions are met.
Earlier this month, CDC raised its full-year sales and profit forecast for the second time in four months because acquisitions have bolstered revenue more than the company expected.
The company had added products such as ring tones and online games through its purchases, which included Beijing TimeHeart and a license for Japan’s Stone Age 2 game.
CDC reported in August sales from online games were $7.67 million in the latest quarter, compared with nothing a year earlier, CDC reported on August 22.
Source: Shanghai Daily