Rumor: Ourgame Completes Management Buyout
Sina Tech, 12/22/10
An industry source revealed today that Wu Guoliang, CEO of Chinese online game operator Ourgame, announced at the company's annual meeting that Ourgame had finished its management buyout (MBO) on December 8, buying back all the shares previously held by SeaRainbow Holding Corporation (000503.SZ) and Korean gaming company NHN, making Ourgame a wholly domestically owned enterprise once again. The price of the deal may have been around USD 50 mln. Ourgame also made adjustments to its corporate structure at the same time, and appointed former IBM Greater China senior manager Yang Qing as joint CEO of the company.
In early August this year, SeaRainbow announced that it would sell all of its shares in Ourgame to WDWF (Beijing Wei De Wo Fu Investment Consulting) for an undisclosed amount.
In October, NHN confirmed that it would sell off all of its Ourgame shares, also to WDWF, again for an undisclosed amount.
It is believed that WDWF acted as a carrier to help Ourgame conduct its management buyout, but to date there have been no confirmed reports of which Ourgame executives are connected to the company.
Unconfirmed reports say that although Wu Guoliang had not been a part of WDWF previously, he has since become a minority shareholder. WDWF has permitted Wu's management team to continue operating Ourgame.
Ourgame's new joint CEO Yang Qing is also not on the list of key shareholders that WDWF published in August.
Wu said that over the coming several months, Ourgame will focus its efforts with an eye to making a more detailed public announcement, once it has something to announce.
In the first half of 2010, Ourgame Assets had total revenues of RMB 79.88 mln and net losses of RMB 26.6 mln, while Beijing Globalink Computer Technology, the company which operates games under the brand name Ourgame, had total revenues of RMB 78.55 mln and net losses of more than 24.15 mln.
Editor's Note: For more background on this topic, please see "NHN Divests 55% Stake in Ourgame" MD 10/29/10 and "Searainbow to Sell Off Ourgame Stake" MD 8/05/10 issues.
Keywords: Yang Qing HR Globalink Computer Technology Ourgame Wu Guoliang MBO Internet NHN 000503.SZ Searainbow Wei De Wo Fu online gaming loss revenue
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