Cisco Buys A Piece of Shanda

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February 15, 2006

Shanda Interactive Entertainment and Cisco

Networking equipment maker Cisco Systems Inc. has bought nearly 10 percent of Shanda Interactive Entertainment Ltd., one of the largest operators of online gaming networks in China, according to a Tuesday regulatory filing.

Shanda shares jumped 88 cents, or 5.8 percent, in premarket trading on Wednesday. The stock closed Tuesday at $15.24 on the Nasdaq.

Cisco now owns about 13.9 million Shanda shares, according to the filing with the Securities and Exchange Commission. That represents 9.7 percent of Shanda’s outstanding shares as of Sept. 30.

San Jose, Calif.-based Cisco makes routers and switches used to manage data and voice networks.

Shanda, based in Shanghai, gets most of its revenue from subscriptions to online games such as The World of Legend.

Source: AP

–CSCO likes the way I think. :) I still think this sucker is cheap.