Giant Interactive Group

Giant Interactive Group

Giant Interactive is a Chinese developer and operator of massively multiplayer online (MMO) games.

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Giant Interactive Group stands as a prominent developer and operator within China's online gaming sector, with a strategic focus on massively multiplayer online role-playing games (MMORPGs). The company was established in 2004 by the legendary Chinese entrepreneur Shi Yuzhu, who brought it public on the New York Stock Exchange in November 2007. This marked a significant comeback for Shi, who had previously founded the successful Zhuhai Giant Hi-Tech Group in the early 1990s before it collapsed due to an over-leveraged real estate venture. His return to the gaming industry, his professional roots, signaled a revitalized entrepreneurial journey.

The company's core business revolves around developing and operating online games, monetizing primarily through a free-to-play model where users can play for free but are charged for in-game items and premium features. This model proved highly successful with their flagship title, *ZT Online*, which launched in 2006 and rapidly became one of China's most popular online games. The ZT Online franchise, including various iterations like *ZT Online 2*, has been a cornerstone of the company's revenue, which has cumulatively exceeded 20 billion RMB. Giant Interactive also expanded its portfolio to include other titles such as *Giant Online*, *Elsword*, and the successful casual eSports game *Battle of Balls*, which has attracted hundreds of millions of users.

Operationally, Giant Interactive has a significant development team of over 140 professionals dedicated to creating and enhancing its game portfolio. The company targets the vast market of online gamers in China, with a historically strong distribution network spanning internet cafes, supermarkets, and convenience stores to sell prepaid game cards. In a strategic shift, a consortium led by chairman Shi Yuzhu took the company private in 2014 in a deal valued at approximately $3 billion. This move was seen as a way to gain flexibility to restructure and invest heavily in the growing mobile games sector away from the pressures of the public market. Subsequently, the company was relisted on the Shenzhen Stock Exchange in 2016 through a reverse merger. More recently, founder Shi Yuzhu has indicated that the company's future will be heavily focused on integrating artificial intelligence into game research, development, and operations to enhance efficiency and player experience.

Keywords: Giant Interactive Group, Shi Yuzhu, online gaming, MMORPG, ZT Online, Battle of Balls, Chinese game developer, free-to-play games, mobile gaming, game monetization, NYSE GA, Shenzhen Stock Exchange, video game development, online entertainment, eSports, in-game purchases, virtual items, game publishing, Asian gaming market, PC gaming, casual games

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ACQUISITION by Giant Interactive Group Jul 2016