CDC Corporation, focused on enterprise software, mobile applications and online games, announced today that it has completed the internal restructuring of CDC Games and the online games publisher is now a direct business unit of CDC Corporation.
The completion of the restructuring is another crucial step forward in the company's drive to unlock shareholder value by preparing to become a stand-alone company through a potential carve out from its parent, CDC Corporation and its plans to expand beyond its current leading position in China into other markets globally.
CDC Games pioneered the free-to-play, pay-for-merchandise market for online games in China with its blockbuster game, Yulgang. It continues to be one of the top online games in China with over 37 million registered users. In 2007, CDC Games plans to launch several new and exciting games in China including The Lord of the Rings Online: Shadows of Angmar, a MMORPG based on the literary works of J.R.R. Tolkien, "Special Force", one of the most popular online games in Korea in 2006 and "Stone Age 2", an animated game set in the pre-historic era.
As a result of the restructuring, CDC Corporation has acquired 100 percent of CDC Games from China.com Inc., a 77 percent-owned subsidiary of CDC Corporation, for a purchase price of $110 million, $50 million of which was paid in cash and $60 million of which will be funded through an 18 month note bearing interest at 5% per annum. Additionally, CDC Corporation will pay up to $25 million to China.com Inc. in the event CDC Games completes a successful listing on certain recognized stock exchanges within the next 12 months - CDC.
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