(Ecns.cn)--Though widely known as a Chinese operator of online games, Shanda Interactive Entertainment Limited has tried to build itself into a media tycoon since its establishment in December of 1999.
Yet after years of effort it remains unclear if Chen Tianqiao, the founder of the Shanghai-based company, will be able to realize his dream.
In September, Shanda published its financial results for the second quarter of 2011, which indicated another decline in profits. Though the total net profit for the second quarter was US$1.4 million, an operating profit of 4.8 percent reached its lowest level in the history of the company.
Bolstered by online games
Known for "The Legend of Mir," a series of online game invented by Korean game-developer Wemade Entertainment, Shanda soon gained a number of followers on the Internet and won respect among game lovers.
In 2004, seven years after its establishment, profit earned by the company had made Chen the richest man in China. In May of the same year, the company was listed on the US-based NASDAQ stock exchange, raising US$151.8 million.
In 2005, Shanda claimed to have 460 million registered accounts on its online game website with an average of 1.2 million players at any given time.
Boosted by the success of it online games, Shanda marched towards becoming a media giant. In 2008 and 2009, the company established Shanda Literature Limited, which focused on providing online novels, and purchased the video-sharing website Ku6.com.
The two websites helped to expand Shanda's business fields, but failed to provide the most practical thing, however – profit. According to the predictions of Morgan Stanley, the two businesses will continue to remain in deficit for the long run.
