Don’t Gamble on Shanda, Says CCTV 盛大被曝光

Looks like Chen Tianqiao’s Shanda (Nasdaq: SNDA) has been caught running gambling tables for Chinese Internet punters — a revelation that can’t be good for this company already trying to figure out exactly where it should focus its energies.It seems the media police, otherwise known as CCTV, has run an expose that caught one of Shanda’s units in the act. (English article; Chinese article) I’ve seen these kinds of exposes before, two of which dealt a sharp short-term blows to Sina (Nasdaq: SINA) and Focus Media (Nasdaq: FMCN) for promoting such unworthy causes as fortune telling and fake medical services. Never mind that this Shanda unit may be a small part of its overall business, as advertisers and other merchants will now avoid the company for fear of angering government officials. Watch for Shanda’s top and bottom lines to take a beating in the coming year.

Bottom line: Shanda’s business will take a hit for the next 2-3 quarters after CCTV uncovered online gambling at one of its units.

CCTV作为中国”媒体警察”的地位不断增强。《焦点访谈》近期曝光盛大<SNDA.O>旗下边锋游戏涉嫌赌博，这对於苦於找不到业务重心的盛大来说，可不是什麽好消息。”央视曝光”的杀伤力不可小觑。此前新浪<SINA.O>和分众传媒<FMCN.O>都因旗下业务违规被CCTV曝光而在短期内遭到 沉重打击。尽管此次盛大被曝光的子公司不过是其整体业务中的很小一部分，但商家和广告主现在恐怕要对盛大退避三舍，以免惹恼相关部门。盛大今年的收入和盈 利恐怕都要受打击。

一句话：未来2-3个季度，盛大的业务将受央视曝光影响。