Online game firm’s stock advances after China partnership


CNA

TAIPEI — Shares of online game provider MacroWell OMG Digital Entertainment Co., Ltd., made an advance in Friday trading as buying was triggered by a newly announced partnership with China-based HNA Group to penetrate the mainland market, dealers said.

MacroWell, also known as OhMyGod, closed up 4.72 percent at NT$222.00 (US$7.35) with 276,000 shares changing hands, while the index of the over-the-counter (OTC) market, where the stock is listed, fell 1.72 percent to end at 101.65 points.

The alliance with HNA Group, which is engaged in a wide range of businesses in China, such as airlines, airport management, logistics, property development, retail and tourism, is expected to help OhMyGod extend its reach in the huge China market through HNA’s broad business network, dealers said.

They said the cooperation is expected to transform OhMyGod from a domestic online game distributor into a supplier across the Taiwan Strait.

Against the downturn on the broader market due to escalating fears of debt crisis contagion in Europe, the buying in the stock showed optimism that the local online game software developer will benefit from the partnership and boost its bottom line, they added.

Under the partnership, OhMyGod will work with the entertainment business division of HNA Group to operate a platform which the Taiwanese firm will feed with its self-developed online games.

In early December, online game players will be able to gain access to one of OhMyGod’s popular games, Luna Online, an adventure story featuring the leading role named Luna.

After Luna Online, OhMyGod said it would introduce more games into the platform.

The company said as it has lots of experience in successfully running online games in Taiwan, it believes it can replicate such a model in the China market.

In addition to the virtual world, OhMyGod and HNA Group have planned to open 300-500 entertainment and leisure centers in China over the next 10 years to attract young consumers.

The first center is scheduled to open in Guangzhou by the end of this month and an additional eight to 10 centers will start operations next year.