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9you.com Said to Invest in Softstar
[January 01, 2009]

9you.com Said to Invest in Softstar


BEIJING, Jan 01, 2009 (SinoCast Daily Business Beat via COMTEX) --
Shanghai-headquartered online game operator 9you.com is likely to inject money into its Taiwanese peer Softstar Entertainment Inc. (Softstar), disclosed a person familiar with the matter recently.

On December 31, the Taiwan-based game operator held a board director meeting to discuss details of its planned fundraising, said the person.

Softstar plans to raise NTD 100-150 million, or CNY 20.73-31.1 million in its new round of financing, giving its new investors 10%-20% holdings this time, according to the person. 9you.com is considered as one of the potential investors.

The Taiwanese company gained green light from its shareholders at the mid-term annual meeting to attract up to NTD 300 million from its new round of funding. In 2007, it got an investment from KBTelecom, closing its first PE fundraising.

Notably, a flock of online game operators in Taiwan and mainland China are interested in investing in Softstar, whose new product Chinese Paladin Online is expected to come into the market in the first quarter of 2009.

"The potential investors included Softstar's existing shareholder SBTelecom, its cross-town peer Soft-World International Corporation and 9you.com," said the person, "but most industry insiders believe 9you.com will take part this time."



Impressively, 9you.com paid more than NTD 100 million a year earlier to operate Softstar's Chinese Paladin Online in the mainland.

As a renowned game developer and operator in Taiwan, Softstar developed popular personal computer (PC) games like The Legendary of Sword and Fairy, Dream of Mirror and Richman. However, the company has been facing mounting pressure in recent years, when online games won gamers' favor.


Softstar is in talks with two or three potential investors, said spokesperson for the Taiwan online game developer, noting that the company will seek partners that can help its expansion in markets out of Taiwan.

Being one of the biggest casual game operators in China, 9you.com operates an interactive entertainment portal. The portal is the first platform to integrate online game services (MMORPG, massive and medium size casual games, mobile game, etc.), fashional digital entertainment contents a variety of chatting and community services equipped with Avatar System, wireless value-added services and other premiere services.

(USD 1 = CNY 6.82)
Source: www.hexun.com (January 01, 2009)

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