Oak Pacific Raises $430 Million

Softbank Corp. has agreed to acquire a 35% stake in Oak Pacific Interactive, a Chinese operator of Web 2.0 sites like social network Xiaonei.com. The entire deal is valued at $430 million, with Softbank to initially acquire 14% and build up to 35% by the end of next year.

 

Oak Pacific had previously raised $58 million over two rounds of funding, from Accel Partners, DCM, General Atlantic, Legend Capital and Technology Crossover Ventures.

 

PRESS RELEASE

 

Oak Pacific Interactive (OPI), the leading provider of Web 2.0 communities in China, announced today that SOFTBANK Corp. has agreed to lead an investment totaling $430 million for approximately 35% of the company. The investment will be used to augment the market leadership of Oak Pacific's Xiaonei.com, China's largest social-networking site. SBI and JOHO Capital also participated in the funding.

 

Xiaonei.com is a full-featured community and social networking destination that provides an immersive experience for its users. Features of the site include multiplayer gaming and wireless value-added services for mobile users. In the college market, Xiaonei.com has a dominating market share. OPI also owns and operates Mop.com, the largest entertainment portal, and Donews.com, one of the leading IT blogging services in China.

Oak Pacific also announced that Masayoshi Son, President and CEO of SOFTBANK Corp. will join its Board of Directors.

Joseph Chen, Chairman and CEO of Oak Pacific, said, We are honored to welcome SOFTBANK as an investor and to have Mr. Son join our Board of Directors. SOFTBANK's commitment reinforces our mission to develop world-class, scalable businesses that leverage the tremendous growth potential of consumer internet market China. We will use this capital to further our aggressive growth strategy for Xiaonei.com and ensure that it sustains its leadership and innovative spirit for many years to come.

Existing investors of OPI include General Atlantic, DCM, Technology Crossover Ventures, Accel Partners, and Legend Capital.

About Oak Pacific Interactive

Oak Pacific Interactive is a leading next generation internet platform that provides web 2.0 communities, content creation and distribution, and integrated communication. The company has built an array of leading online platforms including xiaonei.com (the dominant social networking site focused on college students and white-collar workers), mop.com (the largest entertainment portal) and donews.com (the leading IT blogging site) through organic growth and acquisition, and a fast growing online game business line including the biggest browser based MMORPG in China. Total registered user base is about 50 million and the daily page views of all the internet assets are as high as 350 million as of early 2008. Oak Pacific is headquartered in Beijing with offices and sales representatives in over 20 cities/provinces in China. For further information on the management and the businesses of the company, see http://www.oakpacific.com.

About SOFTBANK Corp.

SOFTBANK GROUP offers its customers a range of services including mobile communications, broadband infrastructure, fixed-line telecommunications, internet culture, e-Commerce, and others.