Shanda is on the way to transform itself from a game firm to a multi-media firm with diversified business," Chen said in a statement yesterday. Shanda Interactive is expanding in mobile Internet, cyber music and e-book reading services.
To back the expansion, the firm's costs rose 50 percent annually to US$67 million in the first quarter.
In a separate agreement announced on Tuesday, Shanda Interactive agreed to buy the recorded music and wireless value-added services business of Hurray Holding Co for US$36.9 million. Hurray will issue 415.4 million new shares to Shanda to purchase Shanda's online audio business. The transaction is expected to close in the third quarter.
Shanda Interactive now holds 42 percent of Hurray, owner of online video Website Ku6.com.