The CDC Corporation, a company based on enterprise software, mobile communications and online games, has just finished restructuring it’s games division so that they are now a direct business component of its parent company. According to a press release, CDC Games was partially owned by China.com Incorporated, a subsidiary of the CDC Corporation, and was purchased from China.com for $110 million. The whole idea behind the restructuring is to make the company a compeltely independent entity, thus increasing its value. This is the first step in making the company profitable as it prepares to move from a local market to a global one.
CDC Games is a very popular publisher by any standards with Yulgang, a hit game that revolutionized the Chinese market with free play but purchased in-game merchandise. Currently, Yulgang has 37 million subscribers, thus making it one of the most popular games in the country. There are several new games on the way to China via CDC such as a Tolkien property called The Lord of the Rings: Shadows of Angmar.
This could be a situation that’s similar to what NCSoft was in Korea. NCSoft, a South Korean based game publisher that is best-known for Lineage and Lineage II in Korea and City of Heroes in the States. NCSoft, after coming to America, has become a major player in this market as well. This is a company that investors may want to keep an eye on.