New book by Larry Connors Click here Improve your trading - See how
The personal computer (PC) giant will be able to help the Nasdaq-listed online game operator dabble in the new segment as expected, said one source.
"Even if the reported cooperation comes true, it is not clear which product the two sides will select," said an executive for the PC company on September 24, "because Lenovo has a wide range of product portfolio."
Reports have been spreading in the market since mid- September that Shanda would team up with Lenovo to march into the home entertainment market. There were even rumors that talks between Shanda and Lenovo almost came to an end.
The partners were said to be selecting the model of product next. Customers will have access to Shanda content-embedded Lenovo products in their living rooms if the two giants enter into a partnership, citing one of the reports.
In fact, the rumor about the Shanda-Lenovo cooperation first came after the meeting between Lenovo Chairman Yang Yuanqing and Shanda Chief Executive Officer and Chairman Chen Tianqiao at the beginning of the year. The two top executives were reported to have had a long-time talk in Shanghai.
However, executives from Shanda Beijing branch denied the saying after the two companies were brought to the spotlight again.
The home entertainment business is probably now the only segment that can tie up the online game operator with the fourth largest PC maker, said a market observer.
In fact, Shanda, itching for a partnership with Lenovo for a long time, underwent negotiations with the PC maker at the end of December 2006, in an attempt to promote its home entertainment platform e-home via bundled sales with Lenovo products. However, there were no further developments about the talks.
Shanda will continue focusing on its online gaming operation, which contributes 95% to its total revenue. Meanwhile, the company will take chances to set foot in the growing home entertainment market, said spokesman for the Shanghai-based company.
Positioning itself as a content provider, Shanda will join hands with hardware producers when dipping toe in the new sector, added the spokesman.
Lenovo is possibly a right partner for Shanda, said an industry insider, noting that Lenovo has been seeking to offer integrated software-embedded products to boost its PC sales.
(USD 1 = CNY 6.85)
From www.hexun.com, Page 1, Monday, September 29, 2008 info@SinoCast.com
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
