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The biggest Chinese online game operator, Shanda Interactive Entertainment, did not launch a bid to take control of the top Chinese Internet portal, Sina Corp, at the latter's annual general shareholder meeting in Hong Kong as many had expected.
Beijing-based Sina Corp held the conference yesterday to discuss the appointment of three directors, stock option plans for senior management, the appointment of its accounting firm and some other matters.
But the focus of the meeting for the public was about whether Shanghai-based Shanda would try to take control of the board of Sina. Both firms are listed on the NASDAQ stock market in New York. Shanda launched a sudden attack in February by buying almost 20 percent of Sina stock from the open market.
It became the largest shareholder of the most influential dotcom in China in a bid to strengthen its advantage in the online gaming sector. Sina is believed to be the second most influential media organization in China after the State-owned China Central TV.
The coming together of the two top Internet companies was expected to result in a drastic reshaping of the Chinese Internet industry.
But Sina launched a counterattack to try to stop Shanda taking it over.
It was believed that the Shanghai firm would either seek to control Sina at the shareholder meeting or withdraw from the firm.
However, it voted for the three director candidates appointed by Sina's board.
Lu Weigang, a long-time Internet industry observer, said, "Shanda has showed its power in approving or vetoing proposals from the Sina board, but maybe Shanda chairman and CEO Chen Tianqiao is too busy to take full control right now."
Chen has been putting a lot of energy into extending Shanda's leadership in online gaming into the home entertainment sector.
However, Shanda abstained from the vote on the stock option plan, which indirectly led to a veto of the proposal.
On Monday, Sina announced that Wang Yan, president and CEO, would only act as CEO.
Charles Cao, former co-chief operating officer (COO) and chief finance officer (CFO) was appointed as president and CFO. Hurst Lin, another co-COO will take sole charge of that post.
"I am extremely happy with Cao' promotion," said Wang Yan, CEO of Sina. "It is a recognition for his contribution to the company as well as a reflection for the roles he has played within the company over the past years. Cao' promotion is a further affirmation of Cao, Hurst and myself working together as a chief executive team. I am confident that this executive team along with the rest of the top management will take Sina to the next level of market leadership," Sina's official website quoted Wang as saying.
There has been speculation that Wang would resign from Sina and Cao would take over his positions following take-over rumours involving Shanda. Other Sina executives were expected to resign.
Sina has had many management changes in the past five years, with two CEOs leaving the company.
One main reason behind this is that the Chinese Internet portal was formed by the merger of several companies in Beijing, Taipei and the United States in 1998. The shareholding structure of the firm is also highly distributed, with different interest groups competing for power.
(China Daily September 28, 2005)
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