By Benny Kung
HONG KONG (Feb 09) -- Internet major Tencent Holdings said Friday it will invest about three billion yuan ($476.3 million) in China's Shanda Games as a strategic investment aimed at deepening its presence in the Chinese online gaming market.
"The partnership will combine strengths from both sides and is expected to create synergies in various areas such as game development, publishing and operation," Tencent said in a statement.
Shanghai-based Shanda Games owns popular online games such as "Dragon Nest."
Smartphone games made up about a third of Tencent's September quarter revenue, surging 84% to 18.2 billion yuan from a year ago. Total revenue for the quarter came in at 65 billion yuan.
Shenzhen-headquartered Tencent, the most valuable company listed in Hong Kong, had cash and cash equivalents of 87.3 billion yuan as of Sep. 30.
- By Benny Kung; email@example.com; +852 39605150
- Edited by Suzannah Benjamin
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