Shanda literature “bleeding” financing of $110 million, why is all this?

at tencent, baidu eyeing the network literature, shanda literature IPO long-term stalemate, tencent of science and technology, shanda literature has just completed a huge financing, a total of $110 million, $800 million valuation is lower than originally expected, the financing is mainly help shanda literature better layout.

after the outside hearsay Goldman sachs to buy a 20% stake in shanda literature, this round of shanda literature value less than $600 million. It is true that the stake in shanda literature in addition to the Goldman sachs, and an investor – temasek. Goldman sachs, temasek has invested $110 million, the total shares less than 20%. This is also in May 2012, Orbis fund for $15 million, 1.875% shanda literature purchase shares, shanda literature into another round of financing.

according to relevant personage, shanda literature the financing is not in order to compete with tencent, baidu in the field of network literature, but for the grand development of literature itself, including three aspects: 1, improve network writer welfare programs; 2, shanda literature is going to make open platform, the future is not just a shanda literature writers works can be published on the platform, the writer can; 3, strengthen the protection of network literature’s scarce resources, to a broker, help the writer development.

in the window period of improvement, but had not been shanda literature are sounding out another solution to money demand. To a person familiar with the matter to the tencent technology, according to “shanda literature this round of valuation is lower than $800 million, but we’re more than a recent years domestic listed companies financing, investors believed us.”

there are rumours that, Goldman sachs, temasek stake in shanda literature and dramatic story: negotiation to rectified, “change” of the starting point is infamy disrupted negotiations condition. At Goldman sachs and shanda literature in negotiations, the original starting point, founder of wu and his team is put forward to Chen for beginning MBO (management repo) plan, wu won the support of a PE, intends to take starting point for independent operation.

this plan progress is not smooth. Wu team of MBO plan is initially bid at $400 million to $500 million, Chen to bid $800 million is the starting point. This valuation is shanda literature listed overall valuations. Eventually wu and his management team choose run away. Goldman’s left hand to help shanda literature with flotation, the right hand take a stake in the shanda literature.

however, this rumor has not received shanda literature confirmed that wu team is also not for clarification. Tencent technology, shanda literature financing details will be announced tomorrow, shanda literature chairman Robert chiu, shanda literature CEO xiao-qiang hou (weibo), shanda literature CFO Eric leung will attend, along with all the and explanation shanda literature strategy in the future.

source: tencent technology jian-ping lei