SHENZHEN, Jul 14, 2008 (SinoCast China IT Watch via COMTEX) -- OAK Pacific Interactive Corp, China's second-largest operator of social networking Websites, on July 11 signed a purchase agreement with Peagame to take over the Webpage leisure game developer for CNY 10 million.
It is the first acquisition made by OAK Pacific Interactive after it received investment of USD 430 million from Japan-based Softbank.
The purchase of Peagame will further enhance the leading position of OAK Pacific Interactive in China's cyber game industry.
Peagame is the largest Webpage leisure game developer in China. It has attracted more than 3 million registered game players in less than half a year since its inception, becoming the bellwether of the market.
Last count of market research firm iResearch shows that Chinese Webpage game users have hit 2.5 million by the end of 2007, and the number is expected to be 9 million by the end of this year, an increase of 260% year on year, reaching 20 million by 2010.
In face of the huge potential in the Webpage cyber game market, OAK Pacific Interactive will take everything in its power to make a push into the market through purchases and acquisitions with the helps from venture capital firms such as Softbank.
OAK Pacific Interactive Corp may buy more Internet companies before seeking an initial share sale in about two years, Chairman Joe Chen said.
Oak Pacific plans to use the investment received from Japan's Softbank Corp for acquisitions. Oak may target publicly traded Chinese Web firms that have underperformed and generate annual revenue of about USD50 million to USD100 million, he said.
Valuations have definitely come down for Chinese Internet companies. China is still adding a lot of Web users and so there's still good room for growth, say industry experts.
Oak Pacific plans to list in the United States or Hong Kong in about two years, when its offering may fetch a higher valuation.
Oak Pacific Interactive is a leading next generation internet platform that provides web 2.0 communities, content creation and distribution, and integrated communication.
The company has built an array of leading online platforms including xiaonei.com, mop.com and donews.com through organic growth and acquisition, and a fast growing online game business line including the biggest browser based MMORPG in China.
Total registered user base is about 50 million and the daily page views of all the internet assets are as high as 350 million as of early 2008.