Changyou.com Limited (CYOU) said it recently reached a definitive agreement with Shenzhen 7Road Technology Co., Ltd. under which it would purchase 68.258% of the equity of Shenzhen 7Road Technology Co. Ltd. and its affiliates, a reputable web-based game company in China. The company added that the acquisition accelerates its position in China's online games industry and adds a new category of games to its growing product portfolio.
Changyou would acquire 68.258% of the equity of 7Road for fixed cash consideration of about $68.26 million, plus additional variable cash consideration of up to a maximum of $32.76 million that is contingent upon the achievement of specified performance milestones through December 31, 2012.
Johnny Cao, CEO and Founder of 7Road said, "With Changyou's support, we can concentrate on creating high quality titles as we move further ahead in the Web-based games market."
This purchase is expected to be completed by June 30, 2011, subject to regulatory approvals and other customary conditions specified in the deal.
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