Wednesday, February 15, 2006

Cisco an strategic investor, not a business partner for Shanda

According to ZDNet China), Shanda spokesman affirmed that the purchase of Shanda's stock by Cisco was a strategic investment rather than business relationship.

Cisco's China division also confirmed that. Spokesman from Cisco indicated that the company has invested about $300 million dollars in about 25 Chinese companies directly and indirectly. 
The investment serves as a vehicle for Cisco's large cash reserves. The spokesman also indicated that the purchase has been done over last year and not directly related to the latest movement in Shanda's stock price.

Shanda's spokesman expressed management's confidence in achieving the coporate goal of becoming "online Disney". "Cisco's investment indicated their good expectations about our business. Our cash flow is very normal now".


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