BEIJING, April 25, 2011 /PRNewswire-Asia/ -- Changyou.com
Limited ("Changyou" or the "Company") (NASDAQ: CYOU), a leading
online game developer and operator in China, today announced it has recently entered
into a definitive agreement with Shenzhen 7Road Technology Co., Ltd. under
which it will acquire 68.258% of the equity of Shenzhen 7Road Technology Co., Ltd. and its
affiliates ("7Road"), a reputable web-based game company in
China. The acquisition accelerates
Changyou's position in China's
online games industry and adds a new category of games to its
growing product portfolio.
(Logo: http://photos.prnewswire.com/prnh/20090402/CNTH020)
Changyou will acquire 68.258% of the equity of 7Road for fixed
cash consideration of approximately US$68.26
million, plus additional variable cash consideration of up
to a maximum of US$32.76 million that
is contingent upon the achievement of specified performance
milestones through December 31, 2012.
The acquisition is expected to be completed by June 30, 2011, subject to regulatory approvals
and other customary conditions specified in the agreement.
"Web-based games, which can be played in a browser without
installation of a client application, are experiencing rapid growth
and this is the right time to invest to and enter this space," said
Mr. Tao Wang, Changyou's chief executive officer. "Changyou has
been leading the market for massively multiplayer online games in
China, and with the addition of a
proven development team from 7Road, their successful game and wide
network of partner websites, we are pushing forward in our plans to
reach new audiences with the addition of quality products designed
for different consumers."
"Changyou's vision and game development philosophy are
consistent with our own, and we could not be more excited about
becoming a part of Changyou," said Mr. Johnny Cao, CEO and Founder of 7Road. "With
Changyou's support, we can concentrate on creating high quality
titles as we move further ahead in the Web-based games market."
7Road is a developer of Web-based games and the creator of
DDTank, one of the most popular multiplayer Web-based shooting
games in China. The game currently
ranks among China's top five
web-based games on the Baidu search ranking for web-based games.
DDTank had more than 350,000 peak concurrent users globally, in the
fourth quarter of 2010. 7Road jointly operates DDTank with over 50
of the most frequently visited game portals and SNS sites in
China and overseas, such as
Duowan, Baidu, Kaixin001 and RenRen. Translated into 9 different
languages, DDTank has been launched in countries overseas including
Vietnam, Taiwan, Brazil and others.
About Changyou
Changyou.com Limited's massively multi-player online
role-playing games ("MMORPG") business began operations as a
business unit within Sohu.com Inc. (NASDAQ: SOHU) in 2003.
Changyou, a leading developer and operator of online games in
China, was carved out as a
separate, stand-alone company in December
2007, completed an initial public offering on April 7, 2009. Changyou currently operates seven
online games, including the in-house developed Tian Long Ba Bu, one of the most popular online
games in China, and the licensed
Blade Online, Blade Hero 2, Da Hua Shui Hu, Zhong Hua Ying Xiong, Immortal Faith and San Jie
Qi Yuan. Changyou has a diversified pipeline of games with various
graphic styles and themes, including the in-house developed Duke of
Mount Deer, which received an award as one of China's most anticipated online games.
Changyou's advanced technology platform includes advanced 2.5D and
3D graphics engines, a uniform game development platform, effective
anti-cheating and anti-hacking technologies, proprietary
cross-networking technology and advanced data protection
technology. For more information about Changyou, please visit
http://www.changyou.com/en/ .
Safe Harbor Statement
This announcement contains forward-looking statements.
Statements that are not historical facts, including statements
about the Company's beliefs and expectations, are forward-looking
statements. These statements are based on current plans, estimates
and projections, and therefore you should not place undue reliance
on them. Forward-looking statements involve inherent risks and
uncertainties. The Company cautions that a number of important
factors could cause actual results to differ materially from those
contained in any forward-looking statement. Potential risks and
uncertainties include, but are not limited to, the current global
financial and credit markets crisis and its potential impact on the
Chinese economy, the slower growth the Chinese economy experienced
during the latter half of 2008 and in 2009, which could return at
some point in the future, the uncertain regulatory landscape in
the People's Republic of China,
fluctuations in Changyou's quarterly operating results, Changyou's
historical and possible future losses and limited operating
history, and the Company's reliance on Tian
Long Ba Bu as its major revenue source. Further information
regarding these and other risks is included in Changyou's Annual
Report on Form 20-F filed on February 28,
2011, and other filings with the Securities and Exchange
Commission.
For investor and media
inquiries, please contact:
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In China:
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Ms. Angie Chang
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Investors Relations
Manager
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Changyou.com Limited
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Tel: +86-10-6861-3688
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E-mail:
ir@cyou-inc.com
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In the United
States:
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Mr. Jeff Bloker
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Christensen
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Tel: +1-480-614-3003
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E-mail:
jbloker@ChristensenIR.com
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SOURCE Changyou.com Limited